(September 20 – 12:30 ET) – Economists at RBC Dominion Securities Inc. are predicting that the Bank of Canada will hold the line in the face of any further upward move in interest rates by the U.S. Federal Reserve Board.
Dominion Securities says that Canada’s fundamentals are firm. Employment growth is sluggish, as are housing growth, and inflation. The Canadian dollar has been strengthening in the face of the Fed’s last hike. All this suggests that the Bank will stand strong again when the Fed bumps up rates.
RBCDS economists are also forecasting Canada’s merchandise trade surplus will narrow to $2.7 billion. The latest data on the surplus is due out tomorrow. If it narrows, it will be in line with consensus estimates.
They also expect a 0.7% increase in retail sales in July, lower than the consensus forecast of 1.0%.
-IE Staff
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