Canada’s recent dip into an economic soft patch will keep the country’s central bank from raising interest rates for a second straight decision Wednesday, with investors betting it may even be done with hiking altogether. Markets are less sanguine, focusing more on the deteriorating global economic outlook and trade risks between the U.S. and China. The Bank of Canada will also release its quarterly economic forecasts Wednesday, followed by a press conference from Governor Stephen Poloz. In its October forecasts, the central bank estimated growth of 2.1 per cent in 2019 — which now looks on the high side. For one, signs have begun to emerge that higher interest rates are slowing consumption and the housing market.

Source: National Post January 09, 2019 14:03 UTC