Reuters have a piece up (from Friday ICYMI) saying Canada's central bank is likely to change its interest rate guidance in the new year
- so it has the option to raise borrowing costs earlier than planned despite the threat the Omicron variant poses to growth
Some of the remarks from the article from analysts:
- "Even if the Bank of Canada wants to be a little bit cautious in front of a potential winter set of shutdowns..., if they think inflation expectations are starting to become unanchored, that will be their primary concern," Andrew Kelvin, chief Canada strategist at TD Securities.
- "Certainly in January they will want to give themselves the option of March,"
"January will be a declaration that every meeting is now a live meeting" for a rate increase, said Adam Button, chief currency analyst at ForexLive.
- "I don't think (the bank) will change course on Omicron because they'll see that as inflationary" because it could disrupt supply chains even further
