The Globe and Mail reports in its Wednesday edition that the Bank of Canada will likely pare back its
economic outlook at an interest rate
decision Wednesday and
say lingering damage from an
oil slump is weighing on
exports.
A Bloomberg dispatch to The Globe reports that Governor Stephen Poloz may
cut his current forecast of 2.2-per-cent growth for 2017, now
above the consensus of 1.9 per
cent, and some analysts say he
will push back his prediction for
the economy to reach full output
next year. The bank's key
interest rate will remain at 0.5
per cent, says a survey of
25 economists.
The BOC shifted
gears on its economic outlook
last month, saying inflation
risks had tilted to the downside
since July and exports have lost
ground. The change may herald further rate cuts if
necessary.
TD Securities analyst Brittany Baumann says, "While a rate cut this month
is unlikely in our view, should
incoming data beyond October
confirm further deterioration in
growth conditions, particularly
in non-energy exports and U.S.
growth, the risk of additional
policy easing will grow considerably."
BMO economist Benjamin Reitzes says, "There's no doubt they will
stay cautious" in Wednesday's
decision.
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