Bank of Canada to Remain in Wait-and-See Mode Following July CPI
Dow Jones
Aug 17
0923 ET - Bank of Canada won't be in any rush to reconsider rate policy based on the July CPI report, says CIBC Capital Markets' economist Andrew Grantham. Headline inflation accelerated to 3.0%, a tad above expectations, with energy prices and World Cup-fueled travel costs leading the way. Core inflation, which strips out volatile items, remained fairly subdued, at near 2%, and inflation excluding gasoline was unchanged at 2.2%. Grantham says BOC officials have the luxury to assess the impact of both energy prices and US-Canada trade tensions before deciding on when to pivot on rate policy. BOC issues its next decision Sept. 2. Grantham adds that BOC minutes indicated policymakers exhibited caution that recent economic momentum might not have staying power.
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