Bay Street still betting on July rate hike
Filed Under Main Content · Tagged: Bank Of Canada, Banks, Basis Points, Bet, Central Bank Governor, Charlottetown, Economists, Global Developments, Global Economy, Global Growth, Households, Interest Rate, Interest Rates, Mark Carney, Ottawa Citizen, Pace, Rate Hike, Stimulus, Temper, Uncertainties
Ottawa Citizen- Bay Street economists are betting the Bank of Canada will raise interest rates again in July even though the central bank governor reinforced Wednesday that more hikes are no sure bet as aggressive budget-cutting measures in Europe threaten the pace of global growth.
In a speech in Charlottetown, Mark Carney said “considerable uncertainties” remain in the global economy, and that the paring back of debt among households, banks and countries had “barely begun, and will … temper the pace” of global growth.
The central bank raised its key interest rate by 25 basis points on June 1, based on stronger-than-anticipated domestic growth. Prior to Wednesday’s speech, the betting among economists and traders was for Mr. Carney to increase rates again on July 20.
Mr. Carney, however, appeared to dampen expectations Wednesday, arguing any further removal of stimulus from the strongest Group of Seven economy over the next two years had to be balanced against global developments…
