The Globe and Mail reports in its Wednesday, July 23, edition that the Bank of Canada is, for now, taking on a neutral stance toward interest rates. The Globe's Kevin Carmichael writes that if the economy gets stronger than currently expected, the BOC will ready for higher interest rates. If economic conditions unexpectedly worsen, the BOC says it is prepared to cut its benchmark interest rate from its already low setting of 1 per cent. Toronto-Dominion Bank economist Craig Alexander doubts the BOC will surprise and cut interest rates. Canada's prospects hinge on exports, which makes the United States economy's trajectory the most important leading indicator of Canadian growth. The U.S. economic recovery the BOC is waiting for could come back faster than it currently thinks. Federal Reserve Board chairman Janet Yellen last week said virtually all the first quarter decline in the U.S. was the result of the unusually harsh weather, while Mr. Poloz still was suggesting he thinks the U.S. recovery has lost a step. Mr. Alexander notes the economy would have to reverse course quite dramatically to justify a rate cut. He wonders whether lower borrowing costs materially changes anything.