{"id":46453,"date":"2024-04-29T10:00:46","date_gmt":"2024-04-29T10:00:46","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/04\/29\/hot-u-s-inflation-signal-throws-bank-of-canada-a-curveball\/"},"modified":"2024-04-29T10:00:46","modified_gmt":"2024-04-29T10:00:46","slug":"hot-u-s-inflation-signal-throws-bank-of-canada-a-curveball","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/04\/29\/hot-u-s-inflation-signal-throws-bank-of-canada-a-curveball\/","title":{"rendered":"Hot U.S. inflation signal throws Bank of Canada a curveball"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">News<\/li>\n<li class=\"breadcrumbs__item\">Economy<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">Too wide a spread between interest rates here and in the U.S. could hurt the Canadian dollar and reignite inflation<\/p>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Apr 29, 2024<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 0\u00a0minutes ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<div class=\"article-meta__bottom\">\n<div class=\"bookmark-wrapper\">\n<div class=\"popover\" data-aqa=\"popover\" data-click-to-appear=\"True\" data-container=\"\" data-container-offset=\"\" data-no-style=\"\" data-popover-component=\"\" data-position=\"top\" data-sticky=\"\" data-tail-offset=\"200\" data-tail-position=\"right\"><button class=\"popover__trigger bookmark-button\"><span class=\"save-article-button save-article-button--default\" title=\"Save article\" data-article-id=\"14557605-54dd-4e85-a6ab-7277ee312d37\" data-evt-skip-click=\"true\"\/><\/button><\/p>\n<div aria-describedby=\"popover-desc-popover-bookmark\" class=\"popover__content\" hidden=\"\" role=\"dialog\">\n<div class=\"popover__content__wrapper\">\n<div class=\"popover__content__text\" id=\"popover-desc-popover-bookmark\">\n<div class=\"bookmark__popover__content\">\n<p>You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n<p><button class=\"popover__content__close\" data-evt-skip-click=\"true\" title=\"Close\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" viewbox=\"0 0 12 12\" class=\"icon--close\" height=\"12\" version=\"1.1\" width=\"12\"><polygon points=\"12 0.95 11.05 0 6 5.05 0.95 0 0 0.95 5.05 6 0 11.05 0.95 12 6 6.95 11.05 12 12 11.05 6.95 6\"\/><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=webp&amp;sig=IjhObTNQoTHEuoUJKE4vBQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=webp&amp;sig=CJCEmAAqF6TDxXzA2Dg5qQ 2x\" type=\"image\/webp\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=jpg&amp;sig=lSS0M-qT54yUE2uQnTIb-g,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=jpg&amp;sig=PxDPpMOvo8jmWBq5vZZclQ 2x\" type=\"image\/jpeg\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=webp&amp;sig=Fh0S7m3HVntpUnhfGWMuGQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=webp&amp;sig=ytzaEo3H_-FRVGvzwaKSkQ 2x\" type=\"image\/webp\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=jpg&amp;sig=bvY-319UhQL8a0eD-iPUEg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=jpg&amp;sig=UwBqtKj3LX9t2GfuZ-DyKQ 2x\" type=\"image\/jpeg\"><source media=\"(max-width: 767px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;type=webp&amp;sig=TTdDVBPmquBxuyGI5bQ6mQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0426fed.jpg?quality=90&amp;strip=all&amp;w=576&amp;h=432&amp;type=webp&amp;sig=2mX5eMg73zKsFOTAbcjkMQ 2x\" type=\"image\/webp\"><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">The United States Federal Reserve building in Washington, D.C.<\/span> <span class=\"credit\">Photo by Erin Scott\/Bloomberg files<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">The Bank of Canada\u2018s upcoming interest rates decision just got more complicated after United States economic data out this week showed growth slowed while inflation remained elevated.<\/p>\n<p>U.S. gross domestic product came in at 1.6 per cent for the first quarter, missing Bloomberg estimates for GDP of 2.5, and slowing significantly from the 3.4 per cent annualized rate recorded in the last quarter of 2023. Meanwhile, the U.S. Federal Reserve\u2019s preferred gauge of core inflation climbed 0.3 per cent in March and 2.8 per cent year over year, causing markets to push predictions for the central bank\u2019s first interest rate cut out to December, with some now forecasting no cut at all in 2024.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment4181432740037920934185009797922816\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, 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National Post and 15 news sites across Canada with one account.<\/li>\n<li>National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__anonymous\">\n<p>REGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<div class=\"identity-screen m-x-0 p-x-0 col-xs-12 col-md-6 flex-justify-center flex-align-center\" aria-live=\"assertive\">\n<section class=\"sail\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-sailthru-personalization-engine=\"\" data-sailthru-personalization-engine-component=\"\"\/>\n<div class=\"m-x-0 p-x-0 col-xs-12 col-sm-6 col-md-12 flex-align-justify-center\" data-auth-component=\"\" id=\"auth-screen-form\">\n<div class=\"identity-screen-form--active w-full flex-align-justify-center\">\n<div class=\"identity-screen-form identity-screen__content w-full\">\n<h2 class=\"blocker-title\">Sign In or Create an Account<\/h2>\n<p><span class=\"identity-divider__line\"\/><span class=\"identity-divider__text\">or<\/span><span class=\"identity-divider__line\"\/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<footer class=\"identity-footer identity-screen__content m-x-0 p-x-0 col-sm-6 col-md-12\"\/><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">The possibility of increased hawkishness south of the border poses a wrinkle for the Bank of Canada \u2014 which many expect will cut rates in June \u2014 due to worries that too wide a spread between interest rates here and in the U.S. could hurt the Canadian dollar. That in turn would make it more expensive to buy goods from the U.S., Canada\u2019s largest trading partner, reigniting the inflation the Bank of Canada hoped to cool.<\/p>\n<p>For the moment, at least one currency watcher doesn\u2019t think the June rate cut will be derailed by the U.S. data. It\u2019s the subsequent cut he believes is in question.<\/p>\n<p>\u201cThis shouldn\u2019t really change the outlook for the BoC come June, with the bank still likely to cut rates given the economic resiliency and inflation persistence in the U.S. has yet to be imported to Canada,\u201d Simon Harvey, head of currency analysis at Monex Europe Ltd., said in an email. \u201cThat said, while the BoC outlook remains clear in terms of domestic data, the risk of the Fed not cutting until December, if at all this year, definitely complicates matters beyond June.\u201d<\/p>\n<p>Following a June cut, Harvey said it\u2019s possible that Bank of Canada officials will take a break at the July interest rate meeting \u201cto relay a more cautious message to markets.\u201d<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot15 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-headlinenews background--primary-light-gradient\" aria-labelledby=\"FinancialPostTopStories3640340508845329694339189610381312\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" alt=\"Top Stories\" loading=\"lazy\" src=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.9.0\/websites\/images\/newsletters\/icon-fp-topStories.svg\"\/><\/div>\n<div>\n<p>Top Stories<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Get the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_HeadlineNews\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_HeadlineNews\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment1404486083344820147652617792651264\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>The minutes from the Bank of Canada\u2019s summary of deliberations indicated that the bank could cut one time and then pause to make sure inflation was still slowing reliably.<\/p>\n<p>The Bank of Canada has yet to give any \u201cclear guidance\u201d on its thinking about the trajectory of interest rates, but Harvey thinks the statements made by European Central Bank (ECB) officials provide clues to the mindset of their counterparts in Canada.<\/p>\n<p>The ECB is expected to start cutting interest rates at its next meeting on June 6 as inflation has continued to slow.<\/p>\n<p>ECB President Christine Lagarde has said the Frankfurt-based central bank is data-dependent, not Fed-dependent. Some policymakers have cautioned, however, that the longer there is a gap between the two, the greater the impact will be.<\/p>\n<p>\u201cWe\u2019re seeing ECB policymakers respond to market developments by stressing that the easing cycle is unlikely to be continuous given the implications this has with the Fed remaining on hold,\u201d Harvey said.<\/p>\n<p>Royce Mendes, managing director and head of macro strategy at Desjardins Group, doesn\u2019t think the U.S. GDP data will have an impact on when interest rates can start falling in Canada.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment9635018374960859797293617779834880\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cThe key variable to watch is the currency,\u201d he said in an email. \u201cIf the loonie depreciates too much, that would suggest that monetary policy divergence is reaching its limit.\u201d<\/p>\n<section aria-labelledby=\"moreTopicLabel8815363225570079208990447604072448\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" says=\"\" rate=\"\" cuts=\"\" will=\"\" be=\"\" gradual=\"\" as=\"\" inflation=\"\" risks=\"\" persist=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Bank of Canada governor Tiff Macklem during a news conference in Ottawa.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0424macklem.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=Am2kLV8NfHYm-rPJIqLzKw\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0424macklem.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=-WPZslS3e69eGCzo6fZpmA\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0424macklem.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=Am2kLV8NfHYm-rPJIqLzKw, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0424macklem.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=91ysghmtbm3A7Sz3xHrgqw 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0424macklem.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=YRLm1u7v8Nus1N3A9xS8DA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">BoC says rate cuts will be gradual as inflation risks persist<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" to=\"\" finishing=\"\" the=\"\" job=\"\" on=\"\" inflation:=\"\" macklem=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Bank of Canada governor Tiff Macklem during a news conference in Ottawa.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0419macklem.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=dQHS-CXy7KBONp-csvnYDg\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0419macklem.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=urR9fkoUkceSKVjkgtgcdw\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0419macklem.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=dQHS-CXy7KBONp-csvnYDg, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0419macklem.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=OSxTooOxspR_jrA3Hpm22Q 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/04\/no0419macklem.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=cjfUR-4TFKL4v5AQW8-4IQ 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">BoC \u2018committed to finishing the job\u2019 on inflation: Macklem<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" inflation=\"\" looms=\"\" over=\"\" canadian=\"\" mortgage=\"\" market=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"U.S. inflation remains well above the Federal Reserve's two per cent target.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/02\/us-inflation-vw0213.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=XrqY81ONHTWvummIJwe2hg\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/02\/us-inflation-vw0213.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=jehM2vTlBV966kQd2xaHAw\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/02\/us-inflation-vw0213.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=XrqY81ONHTWvummIJwe2hg, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/02\/us-inflation-vw0213.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=XNnrYOu4WtXeY4Mqyt5-ZQ 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/02\/us-inflation-vw0213.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=4XYo-YRWWgae2B1WQCGIIg 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">U.S. inflation looms over Canadian mortgage market<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>Despite a possible hold in July, Harvey at Monex said the expectation there is for four rate cuts this year: In June and then \u201cthree times from September as inflation risks breaking below two per cent.\u201d<\/p>\n<p>Markets have priced in two Bank of Canada rate cuts this year, according to Bloomberg data.<\/p>\n<p data-async=\"\"><em>\u2022 Email: gmvsuhanic@postmedia.com <\/em><\/p>\n<p><em>\u2014 with additional reporting from Bloomberg News<\/em><\/p>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Hot U.S. inflation signal throws Bank of Canada a curveball<\/a><br \/>\n<br \/>2024-04-29 10:00:46<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links News Economy Too wide a spread between interest rates here and in the U.S. could hurt the Canadian dollar and reignite inflation Published Apr 29, 2024 \u00a0\u2022\u00a0&#8230;<\/p>\n","protected":false},"author":2,"featured_media":46454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-46453","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/46453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=46453"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/46453\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/46454"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=46453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=46453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=46453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}