Keys to the Canadian interest rate

This Wednesday the Bank of Canada will announce its decision regarding the interest rate. After that, they will make a statement to inform what led to this decision and what the general situation of the economy is, which will allow projecting on future measures.

The decision to maintain the same monetary policy is expected to be replicated, maintaining the interest rate at 0.25%. Expectations are located in the statements regarding a possible change in the asset purchase policy since in the last announcements, this was the measure taken.

There is speculation with reductions in the monetary stimuli provided by the BoC, since the economic indicators have remained under positive results.

The unemployment rate fell from 8.2% to 7.8% and the variation in employment was better than expected, resulting in 230K showing a rise in the number of Canadians employed.

In turn, inflation remained within expectations, at 0.5%. In terms of production, the manufacturing sector PMI remains in solid expansion led by rebounds in production and new orders and a new record in post-production inventories.

In June, there was a slight drop towards 56.5 but the expansion continues. The main difficulties affecting the deterioration of supplier performance continue to be material shortages, lengthened average delivery times, COVID-19 restrictions, transportation delays were also linked, and the difficulty of finding a hand of qualified work.

The USDCAD closes buy at 1.252 after opening Thursday at 1.247.