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By Sam Boughedda
Investing.com — Canadian information got here in above expectations Wednesday, sending the to its lowest degree in three months.
The month-to-month CPI got here in at 0.2%, above the 0.1% consensus whereas the yearly was reported at 4.4% towards the anticipated 4.3%. The yearly fee was at an virtually two-decade excessive.
Chatting with Bloomberg, Derek Holt, an economist on the Financial institution of Nova Scotia, stated he believes the Financial institution of Canada will elevate its benchmark fee on 4 events within the second half of 2022 and an extra 4 occasions the subsequent yr because the inflation Canada is seeing is not transitory.
Canada’s charges are presently at 0.25%, and the inflation quantity might trigger the BoC to rethink its fee plan.
With the USDCAD sliding to a three-month low of 1.2307 on Wednesday, merchants look to be betting that the central financial institution might be compelled into elevating charges sooner than anticipated, very like we now have seen with the GBP and Financial institution of England.
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