The Globe and Mail reports in its Saturday, Oct. 22, edition that weaker-than-expected inflation
and a drop in retail sales helped
to fuel speculation Friday about
a possible interest-rate cut by the
Bank of Canada.
A Canadian Press dispatch to The Globe reports that while economists say the bar
for a cut is high, the economic
information did nothing to quell talk
about a future rate cut following
comments by Bank of Canada
Governor Stephen Poloz earlier last week that the possibility was
actively discussed by the central
bank's governing council.
The BOC downgraded
its economic outlook in its fall
monetary policy report last week
due to expected softness in the
housing market and a weak outlook
for exports.
The central bank cut its forecast
for economic growth to 1.1
per cent for this year, down from
its July projection of 1.3 per cent,
and lowered its estimate for 2017
to two per cent compared with
an earlier call for 2.2 per cent.
Statistics Canada said Friday
that the consumer price index
was up 1.3 per cent in September
compared with a year ago.
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