Bank of Canada Keeps Interest Rate Unchanged

Daily Analysis - 08/09/2016

Rate Left At 0.50% Yet Options For Cut Possible


The Bank of Canada left the main interest rate unchanged at 0.50% at its meeting yesterday. While the central bank was positive on growth, noting that the recent weakness was only temporary and expecting GDP to pick up in the second half of the year, the central bank was concerned by low inflation.

Japan Leading Index Falls in July

Japan's leading index indicator fell in July after posting a modest recovery in June, results from the survey released by Japan's cabinet ministry showed on Wednesday. The leading index indicator is used to measure future economic activity. According to official data, the indicator fell to 100.0 in July, following a revised 100.7 in June and was considered better than the forecasts.


German Industrial Production Contracts

Industrial production in Germany declined unexpectedly in July, data from Destatis showed on Wednesday. Industrial output fell -1.50% on a monthly basis - missing estimates of a 0.10% increase. Excluding the especially positive sectors of energy and construction, Germany's industrial production fell -2.30% during the month.


French Trade Deficit Widens In July

Trade deficit in France increased more than expected in July, data from the customs office revealed on Wednesday. Exports were weaker while imports rose, widening the gap to 4.5 billion euro in July compared to 3.4 billion June. French exports declined -1.80% on a monthly basis in July reversing the 1.40% increase in June. Imports posted a modest increase of 0.10% following a -3.80% decline in June.


UK Industrial Production Rises Modestly

Industrial production in the UK grew at a modest pace, rising 0.10% on a month over month basis in July. Official data from the UK's Office for National Statistics also showed that manufacturing production contracted however, falling -0.90% in July. On an annualized basis, industrial production rose 2.10% in July compared to 1.40% in June. It was also the fastest pace of growth in three months.


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