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2025-09-16 22:37:56
[The Bank of Canada's interest rate decision remains unpredictable after the release of inflation data] Abbey Xu of the Royal Bank of Canada said that the latest Canadian inflation report highlights the delicate balance that the country's central bank must strike in its policy decision on Wednesday. The economist continues to predict that it will be difficult to make a conclusion as to whether to cut interest rates by 25 basis points or keep interest rates unchanged. She pointed out that there are clear signs of economic weakening, but there were also early signs of recovery in the third quarter. In addition, the overall year-on-year inflation rate in August was 1.9%, lower than the 2.1% forecast by the Royal Bank of Canada (RBC), but still higher than 1.7% in July. Xu pointed out that all core inflation indicators continue to be above the country's central bank's 2% target, highlighting the deep-seated inflationary pressures. Xu also said that the Bank of Canada will have to consider the upside inflation risks from sticky core inflation, resilient consumer spending and the government's planned fiscal stimulus measures.
