The Bank of Canada got what it was looking for with the Canadian economy’s third-quarter comeback. This week, we’ll see whether the central bank is feeling nearly as good about the far-less-certain prospects beyond the current rebound – and how that colours the outlook for interest rates.
On Wednesday, the bank will release its latest interest-rate decision, together with its quarterly Monetary Policy Report, containing its closely scrutinized forecasts for the Canadian economy. It’s the first update of the bank’s economic outlook since July – and the economic data have been on a roller-coaster ride in the intervening period. The question is whether the economy has emerged from the turbulent summer still on the course that the bank had envisioned.Report Typo/Error