The week ahead
> PH: Lots of big stockholders’ meetings this week, but the first big piece of scheduled news will be the PSA’s Wednesday morning report on the Consumer Price Index data for May. Then the biggest PSE-related event happens on Friday when Citicore Renewable Energy [CREC 2.70 pre-IPO] hits the open market for the first time.> International: We get a G7 central bank decision on rates in the early morning hours on Thursday, when the Bank of Canada decides to cut or hold. The European Central Bank will make its interest rate decision on Friday morning.MB BOTTOM-LINE: Analysts have been looking to the Bank of Canada to be one of the first to pivot and send rates lower this round, but recent data suggesting strong economic growth has thrown any cuts into doubt. It feels like a school dance where nobody wants to be the first one on the floor, for fear that nobody else will join in and leave the over-eager dancer looking like a complete idiot. Regardless of who goes first, I think it’s important to remember that for people who are just now starting to feel the pinch of higher rates on various outstanding loans, a 25 bp reduction in the central bank’s rate will probably not provide the kind of relief that is needed. Anyone who has been feeling the pinch of higher rates for a while will likely struggle with higher rates for years before rates come down significantly.
