The Bank of Canada is unlikely to increase interest rates next week according to a panel of leading economists, which has also commented on Canadian housing policy.
The Bank of Canada Overnight Rate Survey from global comparison site Finder.com asked 11 economists for their views and found they were unanimous that the BoC would hold steady at 1.75%.
“Other than an overheating housing market in many major cities, there is still much economic uncertainty. A wait-and-see approach is prudent until the economy is clearly pointed in one direction or another,” commented Moshe Lander, Economics Professor at Concordia University.
Alicia MacDonald, principal economist at the Conference Board of Canada added that the BoC is predicting a significant slowdown in economic growth this quarter, meaning it can be cautious on rate rises.
Up or down next?