Economists at Société Générale analyze CAD outlook ahead of the Bank of Canada Interest Rate Decision. BoC to hike 25 bps In Canada, anoth
Economists at Société Générale analyze CAD outlook ahead of the Bank of Canada Interest Rate Decision.
BoC to hike 25 bps
In Canada, another 25 bps increase to 5% is in the balance today, following a spectacular gain of 110K in full-time employment in June. However, wage growth did slow sharply, to 3.9% YoY, as more jobseekers entered the labour force.
Whether rates are hoisted to 5% will depend on whether the central bank believes inflation is still on target to return to target by the middle of 2024. The BoC pointed out in June that three-month measures of core inflation have been running in the 3.5-4% range for several months and that excess demand persists.
We are upbeat on the outlook for the CAD over the medium term, based on solid growth fundamentals and attractive FX valuation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
www.fxstreet.com