The unchanged 1.3% annual headline inflation rate in August and the drop in core inflation to 2.1%, from 2.4%, are in line with the Bank of Canada’s assumptions, so they won’t change its neutral view on the outlook for rates. The odds of it lowering rates further at the upcoming policy meeting in mid October have diminished somewhat, but we still think that it will be forced to cut rates before year end.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.