Economics
Anxiety Returns as Canada Yields Drop With Bets for Hikes
- September inflation, August retail sales miss estimates
- Rate expectations are ‘becoming a little bit more realistic’
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Yields on Canada’s short-term sovereign debt slid to a six-week low after underwhelming economic data pared expectations for another interest rate hike this year.
Both September inflation and August retail sales came in below analysts’ expectations on Friday, suggesting the Bank of Canada will remain on hold at its announcement on Oct. 25 after raising rates twice in a row. Governor Stephen Poloz said Oct. 14 that this year’s tightening has offset 2015 easing and the bank was now in “intense data-dependent mode.”