8 December 2010
• “The third quarter showed higher than it was expected household spending and growth in business investment”.
• “The net exports turned out to be lower than it was projected”.
• “Persistent strength in the Canadian dollar could dampen the expected recovery of net exports”
• “There is an increased risk that sovereign debt concerns in several countries could trigger renewed strains in global financial markets”
• “Inflation dynamics in Canada have been broadly in line with the Bank’s expectations and the underlying pressures affecting prices remain largely unchanged”
Analyzing today’s economic conditions and BoC notes, we are not expecting next rate hike until mid-2011.
The next BoC interest rate meeting will be on January 18, 2011.