Bank of Canada rate change not expected

Analysts expect Bank of Canada governor Stephen Poloz will leave the central bank's trendsetting overnight interest rate at one per cent today, says the Canadian Press.
It'll be the 29th consecutive time dating back to September 2010 that the rate remains unchanged.

But the analysts say the news will come in what Poloz says, rather than what he does.

There are reasons for Poloz to be optimistic, but few analysts expect him to show too much of it for fear of boosting the loonie.

A weak loonie plays into two of Poloz's policy goals — helping to restore inflation to the two-per-cent target and making Canadian exports more competitive in global markets.
Bank of Montreal chief economist Doug Porter says Poloz likely would prefer the loonie to weaken further.

And the consensus is that interest rates won't start to rise for a year, or even 18 months.

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