This Wednesday the Statistics Canada office will publish the Consumer Price Index data for the month of October.
The data that will be published, happens after the annual inflation of September had reached 4.4%, marking a maximum in almost two decades.
This fact raises expectations in the market about a possible rate hike at the end of the first quarter of 2022.
This could be reinforced according to the results of this Friday that, in the face of again high results, would push the USDCAD higher.
Although the Bank of Canada maintains that “the economy continues to require considerable monetary policy support”, it is not ruled out that the sustained rise in the CPI will cause anticipated changes. The reason for this is that when the Bank had to take economic stimulus and reactivation measures after the 2020 crisis, they had established levels close to 2 and 3% sustained for the CPI.
The unemployment rate for the month of October is heading towards the Bank’s objectives, at 6.7%. They have advanced in a reduction in unemployment of almost 3% since January (9.4%).
The monthly inflation rate for October is projected to reach 0.7% from 0.2% in September.
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