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2025-09-17 02:02:40
[Analyst: Any doubts about the Bank of Canada cutting interest rates now appear to have vanished] Royce Mendes of CCB believes the latest inflation data has dispelled any lingering doubts that the Bank of Canada is ready to resume rate cuts. The economist noted that core goods inflation (excluding food, energy, and indirect taxes) slowed to just 0.7% annualized in the three months ending in August from 2.6% in July. He said this level is well below the pre-pandemic average, leaving room for an acceleration in the coming months without threatening the Bank of Canada's overall inflation target. CCB's analysis indicates that several categories affected by tariffs have shifted from significant price increases earlier this year to significant price declines in August, and with most of Canada's retaliatory tariffs now lifted, commodity prices are expected to normalize further.
