Canada: Inflation likely hasn't slowed enough to convince BoC to end tightening cycle – CIBC – by MSalordFX Canada Inflation Banks
in Canada that weigh on the loonie. Analysts at CIBC, point out that inflation remains above the Bank of Canada’s target, meaning that the central bank will likely raise interest rates further. “Canadian inflation decelerated further in August, and unlike the prior month the move wasn't just a story of lower gasoline prices. Unadjusted headline CPI fell by 0.3%, with the annual rate easing to 7.0%, from 7.6% in the prior month . While gasoline was the main cause of the monthly drop in CPI.
“Inflation likely hasn't slowed far enough, or for long enough, to convince the Bank of Canada that further interest rate hikes aren't necessary. Because of that, we still see a peak of 3.75% for the overnight rate later this year.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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