Bank Rate Watch: What Will the Bank of Canada decide?
The Bank of Canada is concerned about the strong Canadian dollar affecting the pricing of goods and services to export customers. The U.S. economy remains sluggish and foreclosures of residential properties there remain very high. Economist generally believe that a consumer led expansion will be the only true way out of recession in the U.S. It is thought that this will only really take hold when mortgage foreclosures return to normal levels and the jobless rate declines. Meanwhile back in Canada there is some apprehension as to the previously perceived strength of the Canadian economy. Rates remain low and are seen to be staying that way for some time.