The Bank of Canada is expected to raise its key rate on Wednesday by 25 basis points to 1.5%.
It would be the fourth rate hike since last summer.
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Canada’s central bank is expected to raise its key rate by 25 basis points at a policy meeting Wednesday, marking the fourth hike since last summer.
The policy meeting comes days after a strong jobs report. Canada added 31,800 jobs last month on a seasonally-adjusted basis, according to Statistics Canada, which beat economist expectations. Wages also picked up at a solid pace of 3.6% year-over-year.
Stephen Brown, a senior economist at Capital Economics who specializes in Canada, said he thinks policymakers will focus on a strong rebound in construction jobs. Earlier declines “were due to unseasonably cold weather rather than a sign of trouble in the housing market,” he said.
June also saw a rebounding housing market, which had been sluggish this year amid the implementation of stricter mortgage rules. Construction starts jumped 27.9% in June, Canada Mortgage and Housing Corporation said Tuesday, to a seasonally-adjusted 248,138. Economists had expected housing starts to come in at around 210,000.
The Bank of Canada left its key rate unchanged …read more
Source:: Businessinsider – Finance