mercredi 15 avril 2015
Canadian Rebound May Mean No Repeat of Poloz’s Surprise Cut
Posted on 05:04 by nice news
The Bank of Canada may signal today whether its January surprise rate cut was a rare one-and-done move, or more stimulus is needed, amid signs the damage from a plunge in oil prices isn’t as bad as feared.
Governor Stephen Poloz will keep borrowing costs unchanged for the second straight meeting at a 10 a.m. rate decision in Ottawa, according to all 17 economists surveyed by Bloomberg News. Poloz will also release a revised economic outlook, and hold a press conference.
Investors have pared bets of a second cut this year as Canada’s economy has fared better than economists expected in recent months. If Poloz chooses not to cut interest rates again, it would mark the first time in at least 20 years a policy change was confined to one move.
“It’s still more likely that Bank of Canada remains on hold” today, said Eric Lascelles, chief economist at Royal Bank of Canada Global Asset Management in Toronto. “There isn’t quite enough evidence for that further cut.”
The Canadian dollar, which has fallen 10.2 percent over the past six months, was down 0.4 percent at 7:14 a.m. to C$1.253 per U.S. dollar.
Poloz lowered rates to 0.75 percent to provide what he said was “insurance” against plummeting crude prices that are driving down incomes. Canada’s reliance on crude oil to drive the economy has turned from a blessing to a curse, as prices below $50 a barrel lead companies to cancel investment and cut jobs.
At the same time, the nation’s manufacturing industry, hobbled by years of stronger exchange rates, is struggling to lead the world’s 11th-largest economy. Last month, Poloz told the Financial Times the first quarter for Canada’s economy would be “atrocious,” providing fodder to opposition lawmakers to criticize Prime Minister Stephen Harper over his handling of the economy ahead of elections in October.
Less Dire
The economic data has proven to be less dire.
Statistics Canada April 10 reported an
Governor Stephen Poloz will keep borrowing costs unchanged for the second straight meeting at a 10 a.m. rate decision in Ottawa, according to all 17 economists surveyed by Bloomberg News. Poloz will also release a revised economic outlook, and hold a press conference.
Investors have pared bets of a second cut this year as Canada’s economy has fared better than economists expected in recent months. If Poloz chooses not to cut interest rates again, it would mark the first time in at least 20 years a policy change was confined to one move.
“It’s still more likely that Bank of Canada remains on hold” today, said Eric Lascelles, chief economist at Royal Bank of Canada Global Asset Management in Toronto. “There isn’t quite enough evidence for that further cut.”
The Canadian dollar, which has fallen 10.2 percent over the past six months, was down 0.4 percent at 7:14 a.m. to C$1.253 per U.S. dollar.
Poloz lowered rates to 0.75 percent to provide what he said was “insurance” against plummeting crude prices that are driving down incomes. Canada’s reliance on crude oil to drive the economy has turned from a blessing to a curse, as prices below $50 a barrel lead companies to cancel investment and cut jobs.
At the same time, the nation’s manufacturing industry, hobbled by years of stronger exchange rates, is struggling to lead the world’s 11th-largest economy. Last month, Poloz told the Financial Times the first quarter for Canada’s economy would be “atrocious,” providing fodder to opposition lawmakers to criticize Prime Minister Stephen Harper over his handling of the economy ahead of elections in October.
Less Dire
The economic data has proven to be less dire.
Statistics Canada April 10 reported an
Canadian Rebound May Mean No Repeat of Poloz’s Surprise Cut
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire