Royal Bank Of Canada (RY) Stock Forecasts

Summary

In early June, the Bank of Canada lowered its benchmark interest rate by 25 basis points to 4.75%, its first downward move in four years and with the central bank noting the following. “With continued evidence that underlying inflation is easing, Governing Council agreed that monetary policy no longer needs to be as restrictive.” Consumer price inflation in Canada decelerated to 2.7% in April, below the central bank’s forecast of 2.9%, though still above their 2% target. Policymakers have said that inflation easing likely will be uneven due to global tensions, a greater-than-expected rise in housing prices, and wage growth that is outpacing productivity. The central bank still sees price inflation staying near 3% until mid-2024, before gradually easing. The Canadian economy added 27,000 jobs in May, yet unemployment still rose to 6.2%. Meanwhile, Canada’s GDP grew by a slower-than-forecasted 1.7% in the first quarter (after growth