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Bank of Canada Seen Raising Rates, First to Follow the Fed Higher (Updated)

Posted July 12, 2017

Under Economic Issues


(Andrea Hopkins – Reuters)

The Bank of Canada is widely expected to raise interest rates on Wednesday for the first time in nearly seven years, following the Federal Reserve in a bid to inch rates back toward normal after the global financial crisis a decade ago.

The move, considered unlikely as recently as six weeks ago, would make Canada the first major central bank to follow the U.S. central bank in removing the monetary stimulus poured into the global economy in the wake of the 2008 credit crisis.

The bid by Bank of Canada Governor Stephen Poloz to move rates from near-historic lows of 0.50 percent is hotly debated, with the nation facing stronger economic growth but also a cooling housing market, little inflation, and uncertainty about its trade with an increasingly protectionist United States. Click here to read more.

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