Bank of Canada issues warning: High immigration rate can't conceal grim economic data. Economy faces huge challenges.
Although Canada may not have technically entered a recession, some economists suggest that the declining trend in per capita output is similar to previous economic downturns. Therefore, economists recommend that decision makers analyze beyond the overall positive economic data released in recent quarters in Canada.
It is still uncertain whether the United Kingdom's central bank will cut interest rates for the first time in August.
It is still uncertain whether the Bank of England will announce its first interest rate cut since 2020 next week, due to the regulations before the July 4th election. Major decision-makers have not spoken publicly for more than two months, making uncertainty greater than usual. Whether recent higher-than-expected service inflation is enough to prevent the central bank from lowering interest rates from the 16-year high of 5.25% is anyone's guess. Interest rate futures indicate a 50% chance of a 25 basis point rate cut on August 1. Although a Reuters survey shows that most economists still expect a rate cut, the Bank of England may wait until the next meeting on September 19 to make a decision.
BOE Could Cut Interest Rates in August But Vote Would Be Tight
UBS raises bets on future rate cuts, making the Canadian dollar even more fragile!
Investors believe there is a 60% chance that the Bank of Canada will further loosen its policies at its policy meeting in September. Accelerating the pace of interest rate cuts will ease the pressure on heavily indebted Canadian households. This may also increase pressure on the Canadian dollar. Bank of Montreal said the spread between the Bank of Canada and the US Federal Reserve is widening, which could make the Canadian dollar more vulnerable.
Canadian Dollar Holds Steady as Markets Roil on US GDP Figures
BOE Could Deliver Three Interest Rate Cuts in 2024, ING Says