Cut in Interest Rate Expected Despite Country's Low Inflation
Summary
"I'm grudgingly calling for a 50 basis point (half point) drop on Tuesday, but I'm not convinced that is the right call," says Douglas Porter, deputy chief economist with the Bank of Montreal.
"The strong dollar has made a big difference for Canada," said Global Insight's Dale Orr. "Of course the euro has also appreciated, but Europe doesn't import as much from the U.S. as Canada does so it hasn't had the same impact.""Even oil hasn't gone up nearly as much in terms of the Canadian dollar as it has in the U.S.," he added.See the full content of this document
Extract
Cut in Interest Rate Expected Despite Country's Low Inflation
By Julian Beltrame
OTTAWA -- Bank of Canada governor Mark Carney is expected to cut interest rates by half-a-percentage point Tuesday not because he has to, but because he can.Talk of r...See the full content of this document
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