BUSINESS REPORT: What’s next for interest rates in Canada?

In Wednesday’s policy announcement, Bank of Canada governor Stephen Poloz said that Canadian interest rates would be going up “over time.” Noted Toronto economist David Rosenberg adding that in his view, “it will be a long time.”He said global uncertainty, moderating U.S. economic growth and trade concerns – meaning NAFTA – and even robust employment numbers aren’t enough to move the bank from their current stance.READ MORE: BUSINESS REPORT: Bank of Canada leaves rates untouchedRosenberg, in Thursday morning’s Globe and Mail, called the bank’s stance “cautious,” which is a wait-and-see mode, meaning the bank will be watching trade, housing, bank regulations, fiscal policy, minimum wage hikes and the impact this has on the labour market.Raising rates would do more to compound the uncertainties that Poloz is concerned about.Therefore, Rosenberg forecasts if the U.S. goes ahead with three planned rate hikes in the interim, and they probably will, it could take the loonie down to US$0.73.

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Christmas Bureau serves up Christmas spirit at annual breakfast

The Christmas Bureau of Edmonton held its annual breakfast on Tuesday, the Christmas charity’s premier fundraiser.The breakfast allowed Edmonton’s business community to come together and support the cause, with all proceeds going toward the bureau’s goal.“These next two weeks are really the weeks that everyone comes through for us,” said …

Saudi, UAE head to Paris to offer helping hand to West Africa force

PARIS (Reuters) – Saudi Arabia and the United Arab Emirates are attending a summit in Paris on Wednesday aimed at accelerating efforts to set up a West African force to battle Islamist militants, a sign Gulf Arab states are upping their influence in the region. The G5 Sahel – composed …

Alberta’s list of qualified service dog providers continues to grow

The Alberta government says five new organizations will now be able to train, test and provide service dogs to people across the province who may need them.“Qualified service dogs are dedicated to helping people navigate daily life and, in some cases, even save their lives,” Irfan Sabir, minister of Community …