Bank of Canada to hold fire, but not for long

//Bank of Canada to hold fire, but not for long

The Bank of Canada will probably leave interest rates unchanged at the upcoming meeting but don’t entirely dismiss the risk of surprise action. Given the recently stated concern about the global backdrop, and the vulnerability of Canada to global demand and commodity price moves, we suspect it is only a matter of time before interest rates are cut again. The Canadian economy is not immune to the global slowdown with the latest 3Q GDP growth rate (1.3 % annualised) underlining this point. Nonetheless, the story is one of relative resilience for now, as indicated by a firm jobs market with rising pay. With inflation … (full story)