The Roundup
Quarter in Review – Q2 2024
The one common theme that continues to ring through the markets over the last several quarters, and this one was no exception, eternal hope for interest rate cuts by central banks supported by lower inflation. In June, the European Central Bank and Bank of Canada cut interest rates, while investors still wait for the US Central Bank to make their first move. In Canada employment slowed with unemployment increasing to 6.2% (2% higher than a year ago), while wage growth decelerated to 4.7% (both data points being consistent with easing inflation). Canadian CPI fell back to the 1%- 3% target range, with falling prices for food, services and durable goods, leading the way (although rent prices and travel costs remained high). Tiff Macklem, governor or the Bank of Canada, had more supportive data to show that it was time to begin cutting interest rates, signalling the start of an easing cycle in Canada, with a 0.25% cut dropping the overnight rate to 4.75%.
