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Bank of Montreal
Symbol BMO
Shares Issued 729,416,258
Close 2024-09-20 C$ 122.01
Market Cap C$ 88,996,077,639
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Globe/CP say BMO's Kaushik sees Cdn retail sales rise

2024-09-23 08:54 ET - In the News

The Globe and Mail reports in its Saturday edition that retail sales edged up in July, but economists say it will take further interest-rate cuts to really spark lasting activity. A Canadian Press dispatch to The Globe says Statistics Canada on Friday posted that retail sales rose 0.9 per cent to $66.4-billion in July, helped by stronger new-car sales. The agency said sales were higher in seven of the nine subsectors it tracks with sales at motor vehicle and parts dealers up 2.2 per cent, boosted by a 2.3-per-cent increase in sales at new-car dealers. "It's rare to see a positive surprise from Canadian consumers these days, but the July retail sales report delivered," Shelly Kaushik, an economist with BMO Capital Markets, said in a note to investors. The period the figures covered was largely marked by people anticipating, and then delighting in, the Bank of Canada's decision to cut its key interest rate in July. The BOC cut rates again in September to 4.25 per cent. The rate has weighed on shoppers, particularly those looking to make big purchases or take out mortgages, but as it has been dropping, it has delivered some relief to wallets. That was reflected in core retail sales, which rose 0.6 per cent in July.

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