From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
American shoppers are showing signs of spending fatigue, with retail sales data for April coming in sharply below expectations. According to the Commerce Department, U.S. retail sales were unchanged from March, missing the anticipated 0.4% increase that economists surveyed by the Journal had expected. This slowdown follows a 0.6% month-over-month increase seen in March, highlighting concerns about the state of the consumer amid sticky inflation and higher interest rates.
Key Points:
- Flat Retail Sales: In April, retail sales remained stagnant, failing to meet the projected growth.
- Excluding Auto and Gas: Sales declined by 0.1%, falling short of the expected 0.1% increase.
- Sector Performance:
- Nonstore retailers led the declines, dropping 1.2% from the previous month.
- Sporting goods and hobby stores also declined by 0.9%.
- Clothing and accessories stores saw a 1.6% rise in sales.
- Gasoline sales picked up by 3.1%.
- Economic Context: Economists are closely monitoring consumer spending amid the Federal Reserve’s pivot to keep interest rates high for longer than expected.
This situation underscores the delicate balance between consumer demand, inflation, and monetary policy. As we await further context, it’s clear that retail sales are a critical indicator to watch in the current economic landscape.
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