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NAFTA Concerns Overshadow GDP Data | BOJ Leaves Policy Unchanged
Published July 31, 2018
Canadian Foreign Minister Chrystia Freeland was excluded from the most recent round of talks regarding the North American Free Trade Agreement, prompting fresh concerns over Canada’s future as a party to the free trade treaty. This comes despite Canadian GDP data releasing this morning which is expected to show a sharp increase in economic growth during the month of May.
The Bank of Japan left its main stance unchanged. It’s holding the short-term policy rate at minus 0.1% and is still targeting a 10-year government bond yield at around zero percent. The central bank now says that yields may move upward and downward to some extent.
The euro area’s economic expansion entered a sixth year but growth slowed to just 0.3%, the weakest in two years. Inflation accelerated further above the European Central Bank’s goal, though this was largely driven by stronger energy prices. Unemployment remained at the lowest since 2008.
The US Bureau of Economic Analysis will publish the latest report on Core Personal Consumption Expenditures. The report will include the personal income/spending data, as markets are predicting a modest m/m rise of 0.1% for the core PCE price index in June, with the yearly rate holding steady at 2.0%.