There is nothing pushing Banks of Canada to raise the bar on the interest rate. European mess, weak US recovery, hospitalized Canadian manufacturing sector and under two “so-called” core inflation. All the indicators are in favour of the Bank to wait for a better time.
It is very obvious that the policy makers are so busy with the future of the country that they don’t really find much time to go to the grocery store and they also miss the regular chat on the kitchen table.
Canadians are also too busy to re-manage their debt mis-management that they forgot – how a few percentage points of inflation add up in few years and their wages did not move up much.
This is just a guess. Bank of Canada may decide to flex its muscle to scare off inflation fear for short time.
The bank has decided to keep its target rate at 1% as anticipated.
Bank of Canada Announcement.