"Downside risks to employment" led to a quarter-point Fed cut today. That was foreseen.

What markets didn't know is how the Fed views future rates. Here's what they revealed:
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Tuesday's inflation data was quickly shelved as traders prepared for whatever cryptic pronouncements the BoC and Fed might deliver come Wednesday's press circus. We all share essentially the same data as central bankers, so surprises should be limited. Nevertheless, one sideways comment can still move yields double digits.

If the BoC planned to trim rates tomorrow despite its key inflation measure above 3%—which would be a first since 1991—today’s CPI release won't convince them otherwise.

Canada's primary measure of underlying inflation landed precisely on target today at 3.05% y/y. Sure, that's still above the Bank of Canada's 3% control ceiling, but markets are betting the BoC won't care enough to scrap its easing plans.

The consensus insists that core inflation is destined to drop, and that's all BoC governors need to worry their pretty little heads over, economists say.

Here's what the numbers say:

Overall, Canadian real estate has been taking a rest for a few years. It's been sideways consolidation where nobody’s running for the exits, and nobody’s breaking down sellers' doors.

But lulls in the action don't mean mortgage pros can sit on their hands. In the bulletin below, we've got the market play-by-play for August, plus three tactics originators can apply when managing prospective homebuyers.

Bond yields edged lower as traders practised synchronized breath-holding for this week's BoC, Fed, and StatCan triple feature. It all starts with the Canadian CPI at 8:30 a.m. ET today.

Rates start the BoC's meeting week in a controlled downtrend, having shed a quarter-point in the last month.

For weeks now, confidence has been circling the drain, but a Wednesday trim from Team Macklem might finally give markets the emotional support they’ve craved.

Canadian bank branches vanished at the second-quickest clip this century, according to fresh CBA data. And frankly, it wouldn’t shock many if the pace accelerated.
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It's an uphill battle, but banks are trying hard to keep branches relevant in a digital world. After all, they have so much invested in them, many (especially the 55+ crowd) still value in-person advice, they're great for branding, and customers like the security of nearby branches—even if they don't use them.

But from a mortgage perspective, do branches still pay their way when AI and technology have come so far?

TD thinks so. It's wagering that AI won't meaningfully eat into demand for human advice in "the next couple of years," which is why it's poured so much money into branch mortgage specialists this year.

That strategy is central to TD’s fortunes, but it also weighs heavily on its rivals—brokers included.