Bank of Canada to update rate and policy outlook
All eyes are on the Bank of Canada this Wednesday as it announces its latest interest rate decision and releases a fresh monetary policy report. With core inflation hovering around 3% and recent job numbers showing unexpected strength, economists anticipate the central bank will maintain its current policy rate at 2.75%. The announcement will be closely analyzed for any shift in tone regarding inflation or economic growth outlook.
Markets will also monitor Governor Tiff Macklem’s remarks for signals on how long the bank might hold rates steady, especially as global uncertainty and trade tensions persist.
CPKC earnings follow key labor resolution
Canadian Pacific Kansas City Ltd. (CPKC) will report its second-quarter earnings on Wednesday after market close. This marks the company’s first full quarter following a binding arbitration ruling in May that established new collective agreements for thousands of employees. Investors will assess how the agreements may impact labor costs and operations across CPKC’s North American rail network, especially as demand for freight services evolves.
Economic indicators in focus: GDP and trade
Statistics Canada is scheduled to release May GDP data and a preliminary estimate for June on Thursday. The last report indicated a modest 0.1% decline in April, and early signs point to a similar contraction in May. The numbers will offer clues about whether Canada’s economy is stalling under the weight of high interest rates or if a rebound is still in sight for the second half of the year.
Friday also brings a critical deadline in trade negotiations with the United States. President Trump has warned of 35% tariffs on Canadian exports if no agreement is reached by August 1. Prime Minister Mark Carney acknowledged the complexity of the talks but reaffirmed Canada’s commitment to using every hour available to reach a deal that protects cross-border commerce.
Enbridge eyes renewables as it prepares results
Enbridge Inc. will release its second-quarter results and host a conference call Friday morning. Beyond traditional oil and gas infrastructure, the company is making headlines for its growing renewable energy footprint. Last week, Enbridge announced a US$900 million investment in a Texas-based solar project that will power Meta Platforms’ data centers. Investors will be watching for commentary on future clean energy initiatives and updates on North American pipeline activity.
