Whether the Bank of Canada waits until early 2020 to lower interest rates or doe...
BENGALURU - Whether the Bank of Canada waits until early 2020 to lower interest rates or does so this year has left economists polled by Reuters almost evenly divided, but they say the likelihood of a cut by year-end has increased dramatically from last month.
But the risk to the global economy has risen again from the U.S.-China trade war, which has escalated significantly over the past month. The remaining 44% of economists predicted, however, the bank would cut rates in the fourth quarter, including two who saw a 50-basis-point cut. “With the Fed likely easing in September and then again in October, it looks as if it would be the prudent thing to do for the BoC to take up some insurance as well.”
That probability jumped to 80% for a BoC rate cut by the end of next year, compared with 45% given previously.“Our current forecast is for the BoC to lower rates in January of next year. But the further escalation in the trade war that we saw since we last refreshed our forecasts have raised the odds that they will move even earlier than January,” said Josh Nye, senior economist at RBC.
That, along with a steady inflation rate around the central bank’s target of 2%, could provide some relief for policymakers although clear signs of a global economic downturn have raised doubts over the sustainability of the recent recovery in Canada.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia central bank likely on hold in September, rates seen at 0.5% by early 2020: Reuters pollAustralia's central bank is all but certain to keep its cash rate at a reco...
Read more »
China's central bank chief meets head of Hong Kong monetary authorityChina's central bank governor, Yi Gang, met Norman Chan, the chief executiv...
Read more »
Deutsche Bank Reportedly Possesses (Some) Trump-Related Tax ReturnsBut it’s unclear if Congress will get to see the records.
Read more »
Deutsche Bank Reportedly Possesses (Some) Trump-Related Tax ReturnsBut it’s unclear if Congress will get to see the records.
Read more »
Argentine peso falls again, central bank sells $170 millionArgentina's peso currency traded 2.85% weaker at 57.95 per U.S. dollar on W...
Read more »
Trump slams Fed in fresh attack, says central bank can't 'mentally’ keep upTrump leveled a new attack against the Federal Reserve, charging that the central bank is “mentally” unfit to foster a competitive edge for the United States in the global economy
Read more »