Canada press (The Globe and Mail) suggests that there is a possibility that the Bank of Canada pushes out the timing of an eventual interest-rate increase:
- The paper notes that Canada’s short-term economic prospects are less than bright, and this may prevent a rate hike that the central bank has been anticipating since last year
- Market consensus has it that the Bank of Canada will lift its benchmark rate in the second half of 2014, but the surprise would be if they scrapped guidance that the benchmark rate is eventually going higher
Even further out on the limb:
would be a signal this week that the central bank is prepared to follow the Federal Reserve and wait until 2015 to raise its benchmark interest rate.
More here: Poloz could surprise with first policy decision by pushing back rate rise
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Bank of Canada Governor Stephen Poloz hands down his first policy decision man in charge on Wednesday