BOC sets interest rate policy Tuesday
Posted Apr 16, 2012 6:53 am.
This article is more than 5 years old.
The Bank of Canada sets interest rate policy Tuesday and may raise economic expectations.
The Central Bank will likely keep its overnight lending rate at one per cent where it’s been since September, 2010; but the bank’s policy statement may predict the economy reaching its full output sooner than forecasted earlier this year.
The March job creation results were far above expectations; Bank of Canada Governor Mark Carney also raised expectations in a speech earlier this month talking about higher than expected inflation.
Carney is also dealing with conflicting risks of growth and domestic household debt and the inconsistent growth rates specifically with the Eurozone debt crisis flaring up once again.
A Bloomberg survey of Canadian economists says there’s about a 20 per cent chance the Central Bank will raise its benchmark interest rate for the first time in a couple of years.
