19 July 2010
“In such a situation, there is no necessity in low interest rates”.
Half of the firms surveyed by the Bank said they were going to add workers over the next year. Only 10% planned to cut their workforce.
Porter expects the central bank’s lending rate to reach the level of 2.50% by the end of 2011.
The main stock markets in Toronto and New York showed not very optimistic results last week: uninspiring manufacturing data, soft retail sales numbers, a lower economic growth forecast etc.
Moreover, the U.S. housing data can really continue pressuring the markets. The home sales are expected to fall 10% for June.
“I suppose we’re back to where we were about a year ago – waiting for the recovery,” – Porter said.
“Economists, analysts – they all understood that we are coming back down to earth.”
“Today we still feel some fear, but as soon as we see large numbers in corporate earnings reports, it will help to stabilize the markets”.