The Globe and Mail reports in its Wednesday, Aug. 26, edition that
the Bank of Canada could hike interest rates two weeks
from now, a move that was all but unthinkable
before the
markets started crumbling amid
fears of a major downturn in China's
economy. The Globe's David Parkinson writes that a rate cut is in the works not because Stephen
Harper got on the phone with BOC Governor Stephen
Poloz, although some market participants
took the news of the call
that way. Mr. Poloz values the
BOC's closely guarded
independence far too much to
allow political concerns to muddy
his monetary policy agenda.
While the Tory government has
been accused in the past of dipping
an occasional toe into issues
that are considered the purview
of the central bank, it is not
unheard of for the Prime Minister
and the Governor to have a talk
every now and then -- though it is
unusual indeed for Mr. Harper's
office to broadcast it to the news
media. Mr. Parkinson says any rate move will be Mr.
Poloz's decision, not Mr.
Harper's.
The BOC's most recent
economic outlook assumed
the price for West Texas Intermediate
oil would average
near $60 a barrel. The price
sat below $39 on Tuesday.
© 2024 Canjex Publishing Ltd. All rights reserved.