23 March 2018

In addition to it, the Bank of Canada’s three measures of core inflation also rose. “In my opinion, it will reinforce the forecasts of a further eventual rate growth,” – noted Doug Porter, chief economist at BMO Capital Markets.

As you know, the BoC has raised its key lending rate three times since July, even despite all the uncertainties over the global trade issue. Following the inflation data, chances of a rate hike in May went up from 74% to 82%. However, another report says that a weak 0.3% hike of retail sales in January added to the picture of a national economy losing its previous pace during the recent months.

Meanwhile, the U.S. dollar went down against a number of major currencies, as investors worried about the growing tension on global trade. Canada’s commodity-connected economy may be also affected by a global trade slowdown, but the loonie showed a strong increase this week from optimism about a possible NAFTA renewal.