The Globe and Mail reports in its Monday edition that the Bank of Canada looks certain to stick with its cautious
tune when it issues its latest
interest-rate decision this
week.
The Globe's David Parkinson writes that financial markets are pricing
in a near-zero chance the BOC will change its key
rate from the current 0.5 per
cent when it announces its decision
Wednesday. That would
extend the BOC's stand-pat
streak to 15 rate decisions spanning
nearly two years.
This is one of the four rate decisions
each year that lands in
between quarterly Monetary Policy
Reports, which means the
announcement will not be accompanied
by an update of the BOC's economic forecasts.
The brief statement will, however,
provide the BOC's assessment
of the state of the
Canadian economy, in general
terms.
Last time out, in mid-April,
it played down the economy's
strong start to the year,
attributing much of the faster-than-expected growth to temporary
factors. Since then, key
economic indicators have, indeed,
been more mixed. Recent strong data, however, have
raised the possibility that first quarter
growth may have
topped the 3.8-per-cent annualized
pace that the BOC
baked into its April
projections.
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