Retail sales to moderate amid inflation and higher rates – NFB

Data released on Tuesday showed retail sales in Canada rose 0.9% on April, surpassing expectations, even as March’s figures were revised higher. According to analysts at the National Bank of Canada expect retail sales to moderate price increases and higher interest rates. Key Quotes: “Consumer expenditures on goods came out a little better than expected. … Read more

Fitch affirms Canada’s ratings at ‘AA+’ with stable outlook

Global rating giant Fitch affirmed Canada’s Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDR) at ‘AA+’ with a Stable Rating Outlook. Fitch expects firm Canadian economic growth of 3.8% in 2022, decelerating to 2.2% in 2023. “Fitch’s baseline is that BOC will lift the overnight rate another 150bps to 3% by YE2022 and sustain it … Read more

Modest disappointment in Q1 GDP unlikely to deter BoC from a 50bp hike on Wednesday – CIBC

Data released on Tuesday showed that Canadian GDP rose below expectations during the first quarter. On Wednesday, the Bank of Canada (BoC) will announce its monetary policy decision. Analysts at CIBC point out that despite GDP figures, the central bank is still for a 50bp rate hike. Key Quotes: “Statisticians threw the Bank of Canada … Read more