The stronger-than-expected gain in retail sales in August and preliminary estimate of only a small decline in September show that higher interest rates are yet to weigh on consumption, which is another reason to expect the Bank of Canada to press on with another 75bp interest rate hike next week.
Canada Drop-In (26th October): We’re holding a briefing on the Bank of Canada decision shortly after the Wednesday 26th policy announcement. Register to join our discussion about how close the Bank might be to pausing its tightening cycle, housing market risks and whether interest rates could be cut next year. Register now.
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