By James Langton
(August 22 – 16:50 ET) – Next week all eyes will be on the Fed, as it meets Tuesday to make what should be its final rate decision for several months.
Most analysts are pretty sanguine about the meeting. Almost no one is expecting a rate hike. The only area of interest could be the policy statement that accompanies the rate announcement, though many analysts expect that the Fed will not touch rates during an election. That means it will be November before its next move.
RBC Dominion Securities believes that the Fed will certainly stand pat next week, suspending its decision on the economic slowdown until late fall. CIBC World Markets agrees, as does most every other economist.
InCanada, the June retail sales numbers will be released on Monday. That will be the biggest release next week and it isn’t expect to have much impact. CIBC is expecting auto sales to have boosted the retail segment, giving a lift to some weak numbers.
U.S. durable goods numbers will be out Thursday, along with Canada’s securities transactions data. But with the rate announcement and a long time to go before another one, those numbers won’t have much impact.
On Friday, second quarter GDP numbers for the U.S. will be released and Fed chairman Alan Greenspan will speak at a Kansas City Fed meeting.
On the earnings front, the banks will be back in the spotlight next week with the Royal Bank and Bank of Montreal expected to report on Tuesday, along with Bombardier.