In addition,
No interest rate change this:
Following with an economy that weakens a little. For example, inflationary fears that are slow to materialize and still a lot of uncertainty, the Bank of Canada will choose, once again, not to move and leave its key rate unchanged on Wednesday, believe analysts.
Everything suggests that the Canadian Central Bank will leave its key rate to 2.75 % for a third consecutive decision since March. Similarly, predicted economists from the Desjardins movement as well as national, Montreal, Royale, TD and CIBC banks.
The announcement must be made at 9:45 am. Moreover, It will be followed. Consequently, a few minutes later, of a press conference where the governor of the institution, Tiff Macklem, and his first sub-government, Carolyn Rogers, will explain their decision at the same time that they will brush a general portrait of the overall situation.
The main mission of no interest rate change this keeping inflation at a low. Similarly, stable level, Canada Bank saw the consumer price index slightly increase by 1.7 % to 1.9 % last month, almost in the heart of its target by 2 %. But once the energy prices are removed from the equation, the increase in the cost of living was rather 2.7 %, that is to say a little higher of the variation range it goes and which goes from 1 %to 3 %.
Meanwhile, the economy marks the footsteps, the unemployment rate accusing a slight increase of 6.6 % to 6.9 % since the start of the year and the gross domestic product decreasing slightly in April.
This more. less clear and more or less positive situation stems from the trade war triggered by the American neighbor. We feared at the start that it translated both by a rise in inflation and a decline in the economy. If no interest rate change this the worst fears were not materialized, Canada has not been unscathed and it may still be too early.
The most recent surveys show households. businesses a little less worried than at the beginning of the year, but still hesitant to consume and invest.
The decision of the Bank of Canada on its master rate must be accompanied by an update of its Report on monetary policyhis quarterly portrait of the financial. economic situation in Canada as well as in the rest of the world.
The last time the Canadian Central Bank had to indulge in this exercise. it not only left its interest rates unchanged, but it has also given up producing economic forecasts, as US trade policies made the situation uncertain. Instead, she had developed two scenarios, one pessimist and the other more optimistic, only to illustrate the field of possibilities.
Six of the eight experts from the Monetary Policy Council of the CD Howe Institute also think that the Bank of Canada should leave its key rate unchanged on Wednesday, at 2.75 %. But then. it gets complicated, their forecasts ranging from any change, even on the horizon of the next 12 months, while others suggest additional drops of 0.25, 0.5, or even 0.75 percentage points.
No interest rate change this
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