Although the economy most likely rebounded in third quarter, by an estimated 2.9% annualised, it is widely expected that the Bank of Canada will hold its key policy interest rate at 1% next week. The worsening sovereign debt crisis in Europe, which the Bank now admits looks barely contained, has weakened global economic growth prospects. As such, we think the Bank's next move will be to lower interest rates, possibly in April or June next year, from 1.00% to 0.50%. More importantly, we doubt that interest rates will go up at all between now and the end of 2013.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services