Canada and the U.S., the two prominent countries in North America, are facing a strong economic departure and are said to grow apparently in the coming days.
Central Bank Decision triggers Economic clash
On Wednesday, the Bank of Canada, the central bank of Canada, reveals a statement pointing to the lowering interest rates in June 2024. Conversely, the Federal Reserve, the central bank of the United States, sticks to its decision to not cut rates this year in 2024, —as per the report of the US Consumer Price Index (CPI) on 10 April 2024, Wednesday.
The observers note the current inflation trend in North America, stating that inflation in Canada is seizing towards the mark in effect to interest rate adjustment. At the same time, the inflation in the US is proving to be constant and is resistant to change.
As a result of the turning economies of Canada and the US, observers have concluded that the economic performance of Canada and the US has declined sharply and is headed for slower economic growth.
2024 Fiscal Data: US and Canada Budget Deficit and CPI Shift
This year, the United States is forecasting an overall deficit of 6.8% of GDP, while Canada is expected to have a deficit of 1.8% of GDP which indicates that the US government will spend a higher proportion of its GDP than Canada.
Additionally, the data showed a 3.8% increase in the core consumer price index in the US. On the other hand, Canada’s core CPI rises by 21%. This figure shows that prices in the US are growing faster than in Canada.
The currency market is actively involved in monitoring financial variations. Over the two days, traders saw a jump in the value of the USD against the CAD.
More from CoinzBTC:
