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More cuts please? | The only equity ETF you need
Wealth Awesome July Newsletter
Qayyum Rajan
July 18, 2024
Welcome to the July edition of the Wealth Awesome newsletter. Thank you to the 15,000+ 🇨🇦 subscribers who join us today!
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Market Update
Summary
Inflation Dips and Business Outlook Softens - Another Cut Coming?
The Bank of Canada (BoC) is set to make a pivotal interest rate announcement on July 24.
Anticipated slower inflation, particularly after a surprising May uptick, and a softened Business Outlook Survey ( a survey the BOC runs quarterly) are expected to justify a second consecutive 25 basis point rate cut.
Headline consumer price index growth is projected to slow to 2.7% year-over-year, down from May's 2.9%, with energy and food prices stabilizing.
The Q2 Business Outlook Survey will be scrutinized for signs of a softer economic backdrop, which could bolster the BoC’s confidence in easing inflation pressures. Indicators like supply and demand balance, corporate pricing behavior, inflation expectations, and wage growth will be key focus areas, with expectations of continued improvement
Key Takeaways 💡
Inflation and Business Outlook Indicators Suggest Rate Cut: Slower inflation and a softened Business Outlook Survey support a second consecutive 25 basis point rate cut by the BoC.
Core Inflation Measures and Economic Softening Under Scrutiny: The BoC will closely monitor core inflation trends and business outlook indicators for further economic softening, reinforcing confidence in easing inflation pressures.
What do you think the BOC will do ? |
Stocks
Canadian Stocks over the last 3 months
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The Wealth Awesome Team
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