Canada’s annual inflation rate fell in April to its slowest in more than three years, taking it below the central bank’s target band and adding to evidence of growing slack in the world’s 11th largest economy.
The consumer price index rose 0.4 percent in April from a year ago compared with a 1 percent annual gain the prior month, Statistics Canada said today from Ottawa. That’s the slowest since October 2009, when the country experienced a period of deflation at the end of the last recession.
The report is the last reading on inflation before Stephen Poloz takes over from Mark Carney as Bank of Canada Governor, and gives him less scope to raise his key policy interest rate. Economists forecast the central bank will keep the benchmark rate at 1 percent into next year.
Read more : http://www.bloomberg.com/news/2013-05-17/canada-inflation-falls-to-slowest-since-2009-on-gasoline.html
Retailpropshop: With inflation expectation going down, commodities underperformance and the appointment of a new CB governor, the loonie will be very interesting to watch in the next 6 months. Currently the sentiment is quite bearish for the currency especially against its american counterpart.
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