Canada’s inflation rate increased to 3.3% in July. Not yet target desired! The Bank of Canada’s ideal target rate is 2%. With grocery prices still increasing by 8.5% on an annual basis and mortgage payments increasing by over 30% in the past year , the next rate announcement is a tough call with these 2 influencing factors.
Mortgage interest costs has contributed heavily to the higher inflation rate.
The July inflation figures were higher than most analysts had expected, with RBC envisaging a 2.9% annual increase and BMO and CIBC both predicting an annual jump of 3.1%.
The Bank of Canada’s next move is on September 6th 2023.
The central bank has aggressively increased its trendsetting interest rate by a full 475 basis points over the past year, from a rock-bottom 0.25% to a 22-year high of 5%, to put a halt on inflation.
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