Bank of Canada makes September rate decision
July’s consumer price index (CPI) print showed an annualized inflation rate of three per cent, but much of that rise can be attributed to high energy prices. In addition to strong GDP growth in Q2, the most recent Labour Force Survey showed an increase of 75,000 jobs in July with unemployment falling to 6.4 per cent, its lowest level in two years.
“With the economy and inflation evolving broadly as forecast in the July [Monetary Policy Report], Governing Council agreed to leave the policy rate unchanged,” the release reads. “However, the upside risks to inflation have increased, while new tariffs make growth prospects more uncertain. Governing Council will assess the sustainability of the economic rebound and the outlook for inflation, and is prepared to adjust monetary policy as needed. The Bank remains committed to maintaining Canadians’ confidence in price stability through this period of global upheaval.”
