ChainCatcher news, the Bank of Montreal believes that any significant impact of the recent storm on inflation data is likely to be limited, which means that the market's reaction to any deviation in core inflation could be pronounced. The market generally predicts that this month's core CPI month-on-month rate will steadily rise by 0.3%, with a tendency for a possible unexpected upside. A reading of 0.4% or higher would cause a stir, especially in the context of the recent election of Trump.Logically, if inflation has already begun to rise before the Republican victory, the effects of tariffs and potential trade conflicts could further exacerbate inflationary momentum.However, although targeted tariffs may not push prices higher, this assumption is currently influencing the sentiment in the U.S. interest rate market. Given this market outlook, the bank expects that an unexpected rise in October's inflation data could have a significant impact on U.S. Treasury yields, with inflation data being the most direct factor that could push the 10-year U.S. Treasury yield above the 4.50% threshold.

ChainCatcher news, Montreal Bank Chief Economist Douglas Porter stated that the Canadian economy is moving forward at full speed, albeit struggling to maintain balance, but still experiencing slow growth. The latest GDP data should dampen discussions about the Bank of Canada significantly lagging behind the yield curve and quell rumors that it might make a substantial rate cut of 50 basis points next time.Data shows that Canada's annualized growth rate in the second quarter was slightly above 2%, higher than the Bank of Canada's latest estimate of 1.5%. However, this figure is still only slightly above 1% compared to last year, indicating that economic weakness is still intensifying considering the expected population growth.