Market news
20.11.2019, 14:37

Canada's CPI in well-worn territory – RBC

Josh Nye, the Senior Economist at Royal Bank of Canada (RBC), provides his view on Wednesday's mostly in-line Canadian consumer inflation figures for October.

  • “Headline inflation, which held steady for a third consecutive month in October, is likely to edge higher in the coming months before slipping back below 2% for much of 2020. A near-term rise in energy inflation (weekly gasoline prices now above year-ago levels for the first time in 2019) isn't expected to persist, while mortgage interest costs should continue to come off the boil next year. Core inflation has been remarkably steady since early-2018, seeing only the most modest of upward trends in 2019. Given strong wage growth in recent months, we'll be watching to see if core measures rise further in 2020. But with inflation expectations looking well anchored, the scope for stronger underlying inflation looks fairly limited.
  • The BoC cited on-target inflation as one of the key reasons it opted against an "insurance" rate cut in October. The fact that core measures have hovered around 2% for nearly two years allows the BoC to weigh inflation risks "more symmetrically." That will leave monetary policy dependent on the growth outlook and trade risks. We think below-trend growth over the second half of this year will leave the door open to a rate cut in early-2020. Any disappointment in US-China trade talks (optimism fading a bit as of this morning) would add to the risk of a cut.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location