(October 15 – 11:20 ET) –
Canada’s consumer price index was
ahead of expectations, but
economists say it’s not enough to
worry the Bank of Canada.
Canada’s annual inflation rate
climbed to 2.6% in September from
2.1% in August.
Economists at RBC Dominion
Securities say the numbers are
in line with the central bank’s
expectations and should not
increase its urge to raise interest
rates. However, they do still call
for a tightening sometime in the
first half of 2000.
At CIBC World Markets, the
feeling is much the same:
inflation remains within the
Bank of Canada’s targets and
shouldn’t initiate a hike.
However, CIBC sounds a slightly
more bearish tone on rates,
noting that the central bank
may be forced to follow the U.S.
Federal Reserve Board if it does
hike rates and the C$ takes a
real beating as a result.
IE Staff
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