Bank of Canada Decision Day | UK Services PMI Drops
Published September 4, 2019
The Canadian dollar was trading slightly stronger this morning against the greenback before today’s key Bank of Canada meeting. The Bank of Canada is expected to leave its benchmark interest rate on hold at 1.75 percent as the bank delivers its first policy announcement since early July.
UK service sector activity slowed its pace of expansion further in August, the latest survey report from Markit Economics showed, which delivers another blow to an economy that was already under threat from a possible technical recession. Overall, the UK Services PMI Index fell to 50.6 in August, against the expectation of 51.0.
St. Louis Fed President James Bullard reiterated that the central bank needs an aggressive stance to get ahead of both financial market expectations and a global trade war. Bullard said that the current policy rate is too high and a 50-basis point cut would align the central bank with market expectations.
British Prime Minister Boris Johnson suffered a major setback on Tuesday when lawmakers opposed to a no-deal Brexit voted to take control of the parliamentary agenda, prompting him to call for a new general election.