Market Wire, North America

The Bank of Canada delivered a long-awaited rate cut this morning, and language in the accompanying statement set the stage for more easing to come at subsequent policy meetings – a regime shift that should add to momentum pushing the Canadian dollar lower. In the official statement setting out the decision, policymakers said “Overall, recent data suggest the economy is still operating in excess supply,” and “has increased our confidence that inflation will continue to move towards the 2 percent target”. Officials noted that consumer price growth has slowed, with three-month measures showing “continued downward momentum”. All of the Bank’s...

Canadian headline inflation decelerated again last month, and the underlying price indicators followed most closely by the Bank of Canada continued to weaken – helping clear the way for a rate cut in June. Data released by Statistics Canada this morning showed the Consumer Price Index rising 2.7 percent on a year-over-year basis in April, down from the 2.9 percent increase recorded in March, and closely aligned with consensus expectations. On a month-over-month basis, prices increased 0.5 percent. Shelter costs again provided the biggest lift, with rents climbing 8.2 percent year over year, while mortgage interest costs rose 24.5 percent....