Canadian investors will be tempted to read the latest missives from the Bank of Canada in the coming week, looking for clues on interest rate policy ahead. Go get a good novel instead.
In all likelihood, Governor Poloz will opt to nudge interest rates a quarter point higher, given that the second quarter looks to see a rebound in growth to over 2% after three successive disappointments. While markets are already well braced for that, there’s a lot of uncertainty on the policy path thereafter. Could the text of the rate announcement, the new Monetary Policy Report, or the Governor’s press conference, help you in that regard?