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RBC: HST bumped up Canada’s inflation rate in July

The Consumer Price Index report showed that the headline inflation index rose 0.5% in July in large part reflecting the harmonization of provincial and federal sales taxes in Ontario and BC. The increase was expected by forecasters. As a result, the year-over-year inflation rate almost doubled, coming in at 1.8% from 1.0% in June. The not seasonally adjusted Bank of Canada’s core measure unexpectedly dipped -0.1% in July resulting in the year-over-year rate edging down to 1.6% from 1.7%. Read more:

The Bank of Canada Releases the Summer Issue of the Bank of Canada Review

The recent financial crisis and global economic slowdown have renewed interest in monetary policy options when the policy interest rate is at or near zero. This article examines how different monetary policy frameworks might help to lower the risk and economic cost of such a scenario. The authors present an analytical framework for examining monetary policy at the zero bound, particularly the role of inflation expectations in lowering the real interest rate. Read more:

Bond rally drives down yields

The Bank of Canada may have signalled its intent last month to gradually hike interest rates, but bond markets have other thoughts. Read More:

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Phone: (778) 668-9320
Email: [email protected]
Website: www.scottdawson.ca