CPI Data Suggests Bank of Canada Rate Hikes 'long Way Off'
Dow Jones
Jul 20
0944 ET - The readings on closely-watched gauges of Canadian core prices suggests rate increases from the Bank of Canada "remain a long way off," says Bradley Saunders from Capital Economics. The average of the BOC's preferred CPI-trim and CPI-median measures, which strip out volatile items, rose by a meager 0.07% in June. Saunders says this knocked the 3-month annualized rate down to 1.6%, and pulled the annual core rate down below 2%--the first time this has happened in five years. The BOC sets rate policy to achieve and maintain 2% inflation. The yield on Canada 2-year bonds fell slightly after release of the CPI data. (Paul.Vieira@wsj.com; @paulvieira)
(END) Dow Jones Newswires
July 20, 2026 09:44 ET (13:44 GMT)
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