12 April 2011
• “Recent economic activity in Canada turned out to be even stronger than the BoC had expected”.
• “On average, the central bank projects that in 2011 Canada will show 2.9% economic growth”.
• “Moreover, the Bank suggests that the economy will be normalized in the middle of 2012”.
• “The underlying inflation has decreased”.
• “Core inflation is expected to increase to 2% by the middle of 2012”.
Many economists expect the BoC to start its rate hike cycle this summer. According to their forecasts, we might see the first rate increase on July 19. In the same time, some other analytics have changed their projects to September or October.
The next Bank of Canada rate meeting will take place on May 31.