{"id":376178,"date":"2010-03-01T13:19:00","date_gmt":"2010-03-01T18:19:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:401771"},"modified":"2010-03-01T13:19:00","modified_gmt":"2010-03-01T18:19:00","slug":"bofc-to-leave-rates-unchanged","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/376178","title":{"rendered":"BofC to leave rates unchanged"},"content":{"rendered":"

Last week, U.S. Federal Reserve chairman Ben Bernanke delivered few surprises at his regular testimony in front of U.S. Congress, reassuring markets that the Fed would keep the funds target rate low for \u201can extended period.\u201d <\/p>\n

"In general, the tone was dovish, and triggered a ten point rally in the S&P 500," said Christopher Probyn, chief economist, State Street Global Advisors.<\/p>\n

On Tuesday, Bank of Canada governor Mark Carney will get his turn to assuage investors when he releases the updated interest rate for overnight lending. <\/p>\n

Like south of the border, don't expect any surprises, even despite Monday's impressive GDP figures that saw Canada's economy grow 5% in the fourth quarter of 2009. <\/p>\n

"Though it raises the probability of advancing a tightening in policy, there will likely need to be additional indications of this economic strength being sustained in 2010 before the central bank abandons its conditional commitment of maintaining the overnight rate at its current 0.25% through the end of the second quarter," said Paul Ferley, assistant chief economist, RBC Economics. <\/p>\n

"Our forecast assumes that the overnight rate will not start to rise until the second half of this year finishing 2010 up 100 basis points at 1.25%."<\/p>\n

Stewart Hall, economist, HSBC Securities (Canada), agreed that the BofC should be in no rush to raise rates. <\/p>\n

"The economy is transitioning. Transitioning well in some cases but suffice to say, a good slug of growth remains reliant upon the consumer and government spending
(of which the two account for 3.6ppt of the overall 5.0ppt of growth)," he said.<\/p>\n

In addition to Canada, the Bank of England and European Central Bank are also expected to the maintain their policy rates this week, while the Reserve Bank of Australia is forecast to hike their rate by 25 basis points. <\/p>\n

David Pett<\/a> <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, U.S. Federal Reserve chairman Ben Bernanke delivered few surprises at his regular testimony in front of U.S. Congress, reassuring markets that the Fed would keep the funds target rate low for \u201can extended period.\u201d "In general, the tone was dovish, and triggered a ten point rally in the S&P 500," said Christopher Probyn, […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-376178","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/376178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=376178"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/376178\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=376178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=376178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=376178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}