Scotia thinks the June BoC cut was a policy mistake

I show You how To Make Huge Profits In A Short Time With Cryptos!

  • The BoC’s preferred core inflation gauges, such as trimmed mean and weighted median CPI, surged in May, indicating a reacceleration of underlying inflationary pressures.
  • Core services inflation, including shelter costs, remains very high. Shelter inflation is broadening, with rents continuing to soar and other drivers of shelter costs entering a new phase.
  • Categories that previously contributed to disinflation, such as travel tours, accommodation prices, and food prices, reversed higher, suggesting that earlier disinflation may have been temporary.
  • The BoC’s decision to cut rates seen as a policy error because it violated forward guidance and reacted prematurely to only four months of soft core inflation after a prolonged period of missing inflation targets.

This article was written by Arno V Venter at www.forexlive.com.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *