On Wednesday we have the BOC interest rate announcement and while rates are likely to remain unchanged there is still pressure for rates to go up. The risk of rate rises to the economy are great particularly in house prices and peoples pockets.
We’re likely to continue to see a ‘wait and see’ approach from the BOC although Deputy governor John Murray says that;
“The improving underlying strength of the U.S. economy should more than compensate for the drag from higher interest rates,”
Canada is at risk of being caught in a flux between the exit from emerging markets and a US recovery (or lack of).
