The Globe and Mail reports in its Monday, Jan. 16, edition that the Canadian economy's recent solid run has turned what was a potentially interesting Bank of Canada interest-rate decision this week into another no-change event. The Globe's David Parkinson writes that there will still be, however, compelling reading in the central bank's economic outlook -- and how it balances the prospects for growth with the dangers of a whole new set of risks, especially those posed by the incoming U.S. administration.
The financial markets are pricing near-certainty (99.2 per cent, in fact) that the BOC will hold its key rate at 0.5 per cent when it unveils its first rate announcement of the new year on Wednesday. That would mark the 12th straight decision, dating back a 1-1/2 years, that the bank has stood pat on rates.
The much more critical element to the day's news will be the bank's quarterly Monetary Policy Report, which will provide considerable new detail about the bank's expectations on rates, inflation and the country's economic prospects -- including specific new forecasts for economic growth and inflation for 2017.
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