Key takeaways from the Bank of Canada meeting minutes for July 2026
- Ahead of the Bank of Canada’s July 15 rate announcement, Governing Council members were split over whether the recent rebound in the economy would prove sustainable.
- Brazil’s Labor Ministry reported that formal employment increased by +145.2K jobs in June, above the Reuters consensus estimate of +115.0K.
- Members warned that downside risks to growth include businesses failing to adapt to tariffs, weaker consumer spending resilience, and a prolonged slowdown in the housing market.
- With growth resuming and inflation easing, members agreed that the trade-off facing monetary policy had diminished.
- Despite improving conditions, policymakers agreed that uncertainty remains elevated, largely due to the unpredictable nature of the Middle East conflict.
- Members saw only limited evidence that higher oil prices were spilling over into the prices of other goods and services.
- Members reaffirmed in their communications that they would not allow higher oil prices to lead to persistently higher inflation.
- Policymakers warned that the longer oil prices remain elevated, the greater the risk that inflationary pressures could broaden across the economy.
- Some members expressed concern about signs of upward drift in medium-term inflation expectations, although they agreed that longer-term inflation expectations remain well anchored.
There is little change in the USDCAD off of the comments and ahead of the FOMC rate decision at the top of the hour.
This article was written by Greg Michalowski at investinglive.com.