Here's what experts believe July's inflation data means for interest rates
BNN Bloomberg
Despite a subtle jump in inflation for the month of July, economists are expecting the Bank of Canada to pause interest rate hikes in September, at least temporarily.
On Tuesday, Statistics Canada reported Canada’s annual inflation rate rose to 3.3 per cent for July, largely due to increased gas prices.
The inflation data marks a jump from June’s rate of 2.8 per cent, but experts say the hike was expected.
“We thought that inflation would come in a little bit higher, and this is because of the base effects. You’re dropping off some really low numbers in the back half of last year that is going to make inflation look like it’s accelerating, but in reality it’s not,” Philip Petursson, chief investment strategist with IG Wealth Management, told BNN Bloomberg on Tuesday.
