Previous Trading Days Events 22 Dec 2023

The Canadian economy stalls as the growth rate remained unchanged in October against the forecast of a 0.2 monthovermonth rise. The economy is stuttering under the impact of the Bank of Canadas BoC 10 rate hikes between March 2022 and July, which took the benchmark interest rate to a 22year high of 5. GDP unexpectedly declined in the third quarter, and the central bank expects growth to remain weak for a few quarters.

It fits with the very slow growth narrative that weve seen unfolding, said Andrew Kelvin, chief Canada strategist at TD Securities.

From a monetary policy standpoint, the bank has already hit the threshold required for easing to support growth. It really is just a question of when the inflation profile comes a little closer to their targets.

Canadas annual inflation rate held steady at 3.1 in November, above the central banks 2 target. The bank expects inflation to cool to 2.5 by the end of 2024 and return to the 2 target by the end of 2025.

Source httpswww.reuters.commarketscanadaseconomystalledagainoctoberlikelyup01november20231222

Inflation is further dropping in the United States. The annual increase in inflation is further below 3, boosting financial market expectations of an interest rate cut from the Federal Reserve next March. 

Inflation, as measured by the personal consumption expenditures PCE price index, fell by 0.1. That was the first monthly decline in the PCE price index since April 2020…