With tensions in the Middle East persisting, markets continue to analyze the movement of consumer prices and how it may impact consumer and business activity, along with the global economy. This week, a couple of major central banks, including the Bank of Canada (BoC), will make their interest-rate decisions. Markets will carefully analyze what they say about prices and how it is impacting their domestic economies. In addition to central bank actions, here’s what else to look for this week.

• Canada’s trade balance will be announced tomorrow. North American trade talks grabbed some headlines last week as the Canada-United States-Mexico Agreement is up for review.
• The BoC will make its interest-rate announcement on Wednesday. The BoC’s benchmark overnight interest rate stands at 2.25%. At its last meeting, the BoC said it is willing to shift monetary policy depending on the path of inflation and the economy in response to the conflict in the Middle East.
• South of the border, the inflation rate in May will be released on Wednesday. The US annual inflation rate moved higher to 3.8% in April.
• Over in Europe, the European Central Bank (ECB) will make its fourth interest-rate decision of 2026 on Thursday. The ECB has held interest rates steady since last June.
• Notable earnings announcements in Canada include those of Dollarama Inc. and K2 Gold Corp. Key earnings announcements in the US include those of Oracle Corp. and Adobe Inc.

Canadian markets, in particular, will be glued to the BoC’s interest-rate decision and what the central bank says about Canada’s economy, the labour market and rising inflationary pressures. The BoC remains in a tough position trying to keep inflationary pressures contained while supporting a fragile economy. The US inflation report this week will help tee up the US Federal Reserve Board’s interest-rate announcement on June 17.  

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