Ahead of the Bank of Canada’s next interest rate decision, one chief market strategist said he expects the central bank to hold rates while acknowledging current risks in the economy.
on Wednesday. Karl Schamotta, a chief market strategist at Corpay, said in an interview with BNN Bloomberg Monday, that he thinks the Bank of Canada will acknowledge downside economic risks stemming from volatility in the U.S. banking sector.
Schamotta said he also expects the central bank to also recognize “signs of resilience in the economy,” which he said has grown more rapidly than projections from the Bank of Canada. He said gains in employment have spurred increases in aggregate spending. Schamotta said he expects a future decline in consumer spending, which is likely to weigh on the Canadian economy and bring about negative growth. He said that following outsized increases to interest rates, Canadian consumers will likely curtail spending as they deal with higher debt loads. eight times last year, before electing to hold its policy rate at 4.5 per cent in March.
“At the end of the day, it's shocking that the Canadian economy has not slowed more dramatically than it has [and] that employment is as robust as it is,” he said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Economists, Bank of Canada say Canada 'not immune to spillovers' amid recent banking turmoilThe Bank of Montreal's chief economist Doug Porter says markets are 'incredibly good' at discovering areas of weakness, and that he 'wasn’t sure we’ve seen the end of this.'
Read more »
Bank of Canada expected to hold interest rate this weekThis likely decision comes as economy keeps some steam
Read more »
Bank of Canada expected to hold interest rate this weekThis likely decision comes as economy keeps some steam
Read more »
Bank of Canada expected to hold interest rate again as inflation cools - National | Globalnews.ca'When we combine all these things together, it certainly looks like the (central) bank is likely to hold rates steady for now,'' said BMO's chief economist.
Read more »
Bank of Canada expected to hold interest rates steady despite resilient economyThe bank has been in a holding pattern since early March, when it kept its benchmark lending rate stable at 4.5 per cent after eight consecutive increases
Read more »
Bank of Canada expected to hold interest rate this week, even as economy keeps some steamOTTAWA — The Bank of Canada is expected to hold its key interest rate steady this week as inflation continues to slow, despite other data suggesting the…
Read more »