Bank of Canada: Inflation weakens, increased probability of interest rate cut in July

On July 24th, Jinshi Data reported that the Royal Bank of Canada believes that Canada’s inflation weakened in June, increasing the chance of the Central Bank cutting interest rates by another 25 basis points in July. Similar to the June meeting, we believe that the Central Bank will emphasize the weakening economic background and the general easing of potential inflation, but will not provide additional guidance on future rate cuts. Given the recent fluctuations in CPI data, the tendency for loosening may weaken. Since April, core inflation has been slightly increasing on a three-month annualized basis, but it has been declining earlier this year, so the six-month annualized inflation data still shows a downward trend.