RBC, Canada’s largest bank, has raised its forecasts for 2013 and 2014 Canadian growth.
They now see the economy growing 1.9% this year and 2.9% next year. The consensus estimates are 1.7% and 2.4%, respectively while the BOC sees 1.5% and 2.8%. The driver for RBC is business investment which they see up 3.7% this year and a whopping 7.3% in 2014.
With estimates rising and Canadian economic data remaining upbeat, the risk is that BOC Governor Poloz shifts to a more hawkish stance and the Canadian dollar takes off. Poloz speaks today at 1725 GMT (12:25 pm ET) but it’s probably too early for any shift in policy from him.
