Here are five things you need to know this morning
Inflation eases thanks to end of carbon tax: The latest numbers from Statistics Canada confirm what many Canadians have noticed, inflation isn’t as bad as it has been. The national inflation rate eased to 1.7 per cent in April, down from 2.3 per cent in March. Much of the drop was due to the elimination of the consumer carbon tax and lower oil prices. It’s the slowest pace since September and further complicates the Bank of Canada’s next decision on interest rates, which is set for June 4.
Carney now promising fall budget : Prime Minister Mark Carney says the Liberal government will present a full federal budget in the fall. Speaking to reporters Sunday in Rome, Carney defended his government’s decision not to deliver a budget this spring, saying there is little value in rushing the process. Opposition parties criticized the Prime Minister for being vague about his plans after his government said it would not table a budget before members of Parliament leave for the summer. Finance Minister Francois-Philippe Champagne said instead of a spring budget, the government would put forward an economic statement -- which is usually less comprehensive than a full budget -- in the fall. Carney made it clear Sunday the document will be a full-fledged budget.
Home Depot to hold prices steady: Shares of Home Depot traded higher in the pre-market after the retailer reported sales and guidance that was better than feared. The company also maintained its full-year outlook. However, the company says more customers are delaying larger projects due to persistently high interest rates. The retailer plans to hold prices steady and will reduce non-U.S. imports to 10 per cent by next year.
Dimon warns on complacency: Markets are still adjusting to Friday’s news that Moody’s is cutting the United States’ sovereign credit rating one notch to AA1 from AAA, citing the growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates. Moody’s had been a holdout in keeping U.S. sovereign debt at the highest credit rating possible and brings the agency into line with its rivals Standard & Poor’s and Fitch. In related news, JPMorgan Chief Executive Officer Jamie Dimon warned on Monday that investors are being too complacent. Speaking at the bank’s annual investor day, Dimon said: “We have huge deficits; we have what I consider almost complacent central banks. You all think they can manage all this. I don’t think [they can].”
Top G7 officials meeting in Banff: High-ranking officials from the world’s top economies are in Banff, Alberta this week for a three-day summit that will cover topics including the global economy, the war in Ukraine and artificial intelligence. The gathering is a precursor to the meetings that will happen in Kananaskis, Alta., when North American, European and Japanese leaders gather for the G7 Leaders’ Summit from June 15 to 17. Finance Minister François-Philippe Champagne and Bank of Canada governor Tiff Macklem will lead the meetings scheduled for Wednesday and Thursday. There are reports delegates will focus on reaching agreements on non-tariff issues, rather than debating the United States’ controversial trade policies.
