Will the Bank of Canada raise interest rates again that’s a question many investors are wondering this week ahead of the central bank’s decision on Wednesday leading up to last week Market Watchers were convinced the boc would leave The Benchmark rate unchanged at 4.5 percent this would Mark the third month in a row
The central bank has stood packed in fact a Bloomberg poll of economists in May showed the overnight rate was expected to be left at 4.5 percent until the end of the third quarter then first quarter GDP data came out on Wednesday it was much stronger than expected at 3.1 percent annualized
Growth forecasts were for 2.5 percent growth this reading has now led some economists to call for at least one more rate hike this year some say it could even be this week others aren’t as convinced they think the Central Bank needs to see more data before pulling
The trigger again overall it seems the boc’s wait and see mode is no longer set in stone and the possibility of another rate hike by the end of the summer is growing some more data policymakers will be watching closely are Canadian job figures from May on Friday the unemployment rate could rise above
Five percent after staying the same since December it’s very close to the record low of 4.9 percent in mid-2022 the boc has warned that a tight labor market won’t help get inflation back to its two percent Target welcome to advisor look ahead this is a
Weekly series where I get you up to date on investing and financial news earnings season is slowing down but we have a big Canadian discount retailer reporting on Wednesday Dollarama will release first quarter results it may show higher than expected same store sales after an almost 16 percent
Increase in Q4 new store openings will be a bigger contributor to Its Top Line this year brand recognition and expansion in Latin America could also help sales growth outpace the industry according to analysts the Retailer’s ability to resonate with consumers should bold well as a recession nears
Fats advisor look ahead for this week for more news and information check out globeadvisor.ca
That’s the question many investors are asking ahead of the Bank of Canada’s decision on Wednesday. First quarter GDP out last week was much stronger than expected leading more economists to call for at least one more rate hike this year. Canadian jobs data for May is also out on Friday. In earnings, Dollarama will release fiscal Q1 results on Wednesday. Globe Advisor assistant editor Rajeshni Naidu-Ghelani outlines what to watch out for in investing and financial news in Advisor Lookahead.
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They beed to go DOWN, not up.
The bank of Canada’s job is to control inflation. They took their eye off the ball by giving Trudeau’s over spending government 400 billion dollars which has devalued our dollar. Inflation would be a lot less if our dollar was worth what it was under Harper and the Liberal/ NDP hyperinflating carbon taxes were stopped.