Search site Search ticker symbol

Are you looking for a stock?

Try one of these

Economists react to BoC decision

A
A
 
With the Bank of Canada on Tuesday leaving its benchmark interest at one percent, BNN rounds up reaction from the Street.

  • Michael Gregory, BMO Capital Markets: "As before, the Bank argues that any removal of the “considerable monetary policy stimulus” has to be “carefully considered”. But, for the first time, Carney & Co. are indicating that this stimulus will have to be “eventually withdrawn”. This is not a signal of imminent rates hikes, but it does suggest that we are unlikely to make it past yearend without a rate hike or two."
  • Craig Alexander, TD Economics: "There is no question that interest rates are ultimately headed higher.  The debate is on the timing of when the tightening begins and how high rates will reach…. The timing of the eventual tightening of monetary policy will be heavy affected by how the global risks play out.  If the risks diminish over the coming months, the Bank of Canada could resume raising rates in September, after being on hold for a full year.    
  • Derek Holt, Scotia Capital: "The risk of being on hold later than our October call has diminished with this statement, and that justifies more of a hike scenario being priced in.  Either way, we don’t view it as supportive of the July hike scenario and believe the statement supports our longstanding October call."
  • Mathieu D’Anjou, Desjardins Group: "By taking a more neutral tone and adding a sentence to the effect that it will eventually reduce the existing monetary stimulus, the BoC is signalling that a key rate increase could come at any time...The key rate could end 2011 at around 1.75%."
DISLIKE
 
COMMENTS
 
CTV.ca CTV Two CTV News CTV News Channel BNN - Business News Network CP24