BoC likely to hike interest rate Tuesday
By
|
18/07/2010 8:16:00 PM
|
0
comments
The Bank of Canada is poised to raise its main interest rate for the second time in as many months. Meanwhile Europe ventures into a world of austerity and the U.S. suffers from declining consumer confidence, reports The Globe and Mail.
A large number of securities dealers and economists expect Mark Carney will likely increase the Bank’s key lending rate by 25 basis points to 0.75 per cent.
Canada’s job market has recovered nearly all of the jobs lost during the recession, leading to better demand for businesses. Many observers believe that the sustained growth experienced in 2010 will allow the private sector to maintain future economic output once the federal and provincial stimulus plans end later this year.
Still, investors are not so confident about the long-term economic cycle, which depends on the actions of economies throughout the world, especially of developing countries.
On Tuesday, Carney will also share some highlights from an economic forecast he’ll be releasing on Thursday, which will detail the global economic recovery – something that could be long and slow.