OTTAWA: The Bank of Canada is now expected to hold rates through to the end of next year, according to a slim majority of economists in a poll, with forecasts on whether or not the central bank holds or cuts sitting on a knife’s edge through 2020. The latest poll of over 30 economists showed the BoC will hold its key overnight interest rate at 1.75 per cent this year and next, flipping from equally narrow expectations for a rate cut early next year in the last poll.
That change in expectations was primarily driven by comments from BoC officials — Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins — who spoke last week at separate events about Canada’s monetary conditions being “about right” despite global trade tensions.
Every respondent in the poll expected rates to remain on hold at the conclusion of the BoC’s December 4 meeting, in line with market expectations.
When asked if the Canadian economy actually needs a rate cut before the end of next year, a slim majority of economists — 13 of 24 — said no. Just a month back, a similar set of economists were slightly inclined towards a cut. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
