A big week coming up for the Bank of Canada (BoC) after a strong June jobs report coupled with a stronger Canadian dollar will focus attention on the BoC statement on monetary policy due on Wednesday July 12th. For the first time in seven years, the central bank could actually raise interest rates.
The broad-based improvement in business sentiment reported in the summer edition of the BoC Business Outlook Survey, leads us to expect the Bank to raise its policy rate 0.25% to 0.75%. A hike that should be replicated in October, bringing the policy rate to 1.00% at year-end.
U.S. Federal Reserve Delivers economic report
It is a busy week in the U.S. as Janet Yellen, the Federal Reserve’s Chair, will deliver her semi-annual report on the economy and monetary policy before the House of Representatives Financial Services Committee. In addition, Friday is the inflation rate announcement in the U.S.
What Do Higher Interest Rates Mean for Consumers?
Let’s remember interest rates in Canada, the U.S. and globally have been historically low since the 2008 Financial Crisis. Increasing rates are not a negative for many and a sign of a solid economic environment. Enjoy the break down on what the increase means for Canadian households.