Bank of Canada Canada’s central bank is expected to raise its benchmark interest rate 0.75 percentage points to 3.25 per cent at its policy meeting, according to economists polled by Refinitiv. The decline in petrol prices caused the July cooling in inflation. Despite the moderation, the national inflation rate is far from the Canadian central bank’s target of 2 per cent, suggesting that big rate increases are on the horizon. The Bank of Canada has enacted a historic 1 percent point interest rate increase in July. This is the largest increase since 1998.
Gamestop:Investors will be focusing on how the video gaming retailer has performed in the face of adverse trends in the industry. In recent months, software and hardware manufacturers have suffered lower sales and engagement as gamers return back to real-world pursuits following the removal of pandemic restrictions. Gamestop’s second-quarter revenue is forecast to increase 7 per cent to $1.3bn, according to analysts polled by Refinitiv, although its loss is expected to widen to 52 cents a share, from a loss of 21 cents a year ago.
US international trade:According to Refinitiv economists, the US trade deficit should have fallen from $79.6bn in June and $70.3bn July.
Fed Beige Book: The Federal Reserve will release a report on the economic condition of its 12 central banks districts.
Fedspeak: Federal Reserve vice chair Lael Brainard will speak about monetary policy at the Clearing House and Bank Policy Institute’s annual conference. Michael Barr, the central bank’s vice chair for supervision, will speak about making the financial system fairer and safer at Hutchins Centre on Fiscal & Monetary Policy at the Brookings Institution. Loretta Mester, president of the Fed’s Cleveland and Richmond branches, will also speak at the events.
Other companies Retailer American Eagle Outfitters, software company Asana, and restaurant and entertainment business Dave & Buster’s are all reporting after the bell. Academy Sports and Outdoors, a sporting goods company, will report before the bell.
Canada trade balance: Canada’s trade balance is expected to widen from $5.05bn in June to $3.8bn in July, according to economists polled by Refinitiv.