6 Jan 2014
BoC to face pressure to raise rates in 2014 - Canadian FinMin
FXstreet.com (Bali) - While the Lonnie's poor performance in Q3 2013 was much to blame on the shift of monetary policy communications by the BoC, surprisingly ruling out chances of rate hikes on low inflation, Canadian Finance Minister Jim Flaherty threw some cold water over the weekend, saying he sees the BoC facing pressure to raise rates this year.
According to Flaherty, cited in a CTV interview on Sunday: "I think the pressure will be there, because the Fed in the U.S. should stop printing money, and taper off as they say. And that should help,” he said. The policy-maker, additionally, added that “the OECD and the IMF have both said to Canada we ought to let our interest rates go up a bit. So there’ll be some pressure there for that to happen.”
Referring to the outlook on the budget in the 2015-16 fiscal year, Flaherty expects a large surplus: “Yes, we’ll balance. And it won’t be close. We’re in good shape,” he said.
According to Flaherty, cited in a CTV interview on Sunday: "I think the pressure will be there, because the Fed in the U.S. should stop printing money, and taper off as they say. And that should help,” he said. The policy-maker, additionally, added that “the OECD and the IMF have both said to Canada we ought to let our interest rates go up a bit. So there’ll be some pressure there for that to happen.”
Referring to the outlook on the budget in the 2015-16 fiscal year, Flaherty expects a large surplus: “Yes, we’ll balance. And it won’t be close. We’re in good shape,” he said.