Statistics Canada has just released the latest inflation data for September. The CPI rose just 0.1% month over month, below market expectations of 0.2%. Core CPI fell further to 2.2% year over year from 2.4% the previous month, while monthly growth came in at 0%.
These figures are crucial to the market’s assessment of the central bank’s policy path. Both headline inflation and core indicators came in below expectations, suggesting that the cooling trend in domestic prices is continuing and easing concerns about the economic strain caused by high interest rates.
Following the release, expectations for rate cuts strengthened somewhat in the foreign exchange and bond markets, with corresponding fluctuations in the US dollar against the Canadian dollar. This has also added room for debate over the possibility of looser global macro liquidity.
For crypto markets, slowing inflation is often seen as a mild catalyst for improving liquidity. However, with the external interest-rate environment still diverging, $BTC and overall market sentiment remain cautious, with capital largely waiting for broader macro signals. 📉
#CanadaInflation #CPIWatch #MacroEconomics
These figures are crucial to the market’s assessment of the central bank’s policy path. Both headline inflation and core indicators came in below expectations, suggesting that the cooling trend in domestic prices is continuing and easing concerns about the economic strain caused by high interest rates.
Following the release, expectations for rate cuts strengthened somewhat in the foreign exchange and bond markets, with corresponding fluctuations in the US dollar against the Canadian dollar. This has also added room for debate over the possibility of looser global macro liquidity.
For crypto markets, slowing inflation is often seen as a mild catalyst for improving liquidity. However, with the external interest-rate environment still diverging, $BTC and overall market sentiment remain cautious, with capital largely waiting for broader macro signals. 📉
#CanadaInflation #CPIWatch #MacroEconomics