All the market indices closed higher than the beginning of the month.

• • • The S&P 500 finished at 6,339.39 pts (2.17%)
    • The DOW finished at 44,130.98 pts (0.08%)
    • The NASDAQ finished at 21,122.45 pts (3.70%)
    • The TSX finished at 27,259.78 pts (1.50%)

Canada

Monetary Policy

• On July 30^th, The Bank of Canada (“BoC”) decided to maintain the overnight lending rate.
  • Currently, the overnight rate is 2.75%, the Bank Rate is at 3.00%, and the deposit rate is at 2.70%.
  • “With still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation, Governing Council decided to hold the policy interest rate unchanged.”
  • The next interest rate announcement will take place on September 17^th, 2025.

Economic Data

• CPI inflation was 1.9% in June, up slightly from the previous month (1.7% in May).
• Core inflation was largely unchanged. The two core measures of inflation (median and trimmed mean) tracked by the Bank of Canada (“BoC”) were at 3.1% and 3.0%, respectively.
• Statistics Canada announced that Canada’s economy shrank by 0.1% in May, hindered by weak retail trade. Data is pointing to slower growth over the second quarter of 2025.
  • Retail sales in Canada fell by 1.1% in May.

U.S.

Monetary Policy

• The Fed announced that there was no change to its federal rate in its June meeting.
  • The target range for the federal funds rate is 4.25-4.50%.

• “Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
• The next Fed meeting will take place on September 16^th– 17^th.

Economic Data

• The annual inflation rate in the U.S. rose to 2.7% in June, above the 2.6% rate economists had expected.
• An advanced estimate showed the U.S. economy grew at an annualized pace of 3.0% over the second quarter of 2025, rebounding from a 0.5% decline in the previous quarter.
• U.S. imports declined by 30.3% over the quarter in response to tariffs, positively contributing to growth.

Global

• After eight consecutive rate cuts, the European Central Bank (ECB) held its policy interest rates steady at its July meeting.
  • The ECB’s main refinancing rate sits at 2.15%, while its deposit facility rate and marginal lending facility rate are 2.00% and 2.40%, respectively.
• China’s economy expanded by 5.2% year-over-year in the second quarter of 2025, down from the 5.4% growth in the first quarter.
  • Ongoing monetary and fiscal stimulus measures have helped support China’s economy.
• The U.K. economy expanded by 0.7% in May, which was the lowest increase since June 2024.
  • Economists expect the Bank of England to consider an interest rate cut in August to add support to the economy.

Notes From our Firm

• On Monday August 11^th, members of our firm will be volunteering in the 10th annual Wise Girls “Tee Party” Golf Tournament being held at the St. Catharines Golf and Country Club.
  • This is a sold-out event with 144 golfers, and it is the next major event under the Wise Guys Charity Fund banner.
• Finally, on Saturday August 16^th, the Wise Kids will be hosting a mini-golf event being held at Brock Golf Course from 10am – 1pm.
• For more information on how you can help in the future please visit the Wise Guys website here.

As always if you have any questions, please feel free to reach out to us. Or, if you know someone who would like an opinion on their investments or insurance, please connect us!

Yours Truly,

The Team, C.R. Smith Financial

Community, Respect, Service & Financial Integrity