Bank of Canada’s policy report due this week; could be rate clues
When the Bank of Canada releases its latest monetary policy report this week, mortgage lenders will be looking for any hints that could suggest an interest rate cut. It’s been three months since the last one, but since then there has been a more cautious approach to further cuts. Most experts are not expecting this Wednesday to bring good news for borrowers; the bond markets, for example, are only factoring in a 10 per cent chance of a cut. The policy may be more revealing as the central bank weighs the continued weakness in the oil industry and sets out its forecast for the wider economy. There is little consensus on whether further interest rate cuts will be required and even less on when and how fast they might happen. This week’s report may provide some clues.