Corporate foreign exchange news

Forex analysts expect BOC rate rise

Wednesday, 08 September 2010 09:24:11 GMT

 
Published by Mark Smith-Halvorsen
Forex analysts expect the Bank of Canada (BOC) to raise interest rates once more today (September 8th) before pausing to assess growth.
Nearly three-quarters of economists polled by Bloomberg said they expect the bank's governor Mark Carney to raise rates by 25 basis points to one per cent.
A separate survey forecast that once rates have been raised, they will stay on hold until April 2011.
Marc Rouleau, a fund manager at Standard Life Investments in Montreal, said policymakers are cautious about a potential slowdown after recording weaker-than-expected growth in the second quarter of the year.
"The bank will position itself for a slower growth scenario," he predicted.
Forex brokers are also this morning awaiting the publication of the latest Canadian monthly building permit figures, which are expected to expose considerable contraction in the market.
Data from Forex Factory suggests the July figures may show a decline of 4.2 per cent, against 6.5 per cent growth the previous month.
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