Surprising gains in output and inflation will probably keep Bank of Canada Governor Stephen Poloz from signaling looser monetary policy again after the central bank sent dovish messages on its last three announcement dates.
Canada is increasing funding for automakers by $500 million ($454 million) in a bid to attract more investment from companies such as Chrysler Group LLC to an industry reeling from global competition and declining output.
The Bank of Canada should overlook slowing inflation stemming from the arrival of large U.S. retailers such as Wal-Mart Stores Inc. and focus on fighting tepid demand, Senior Deputy Governor Tiff Macklem said.
Bank of Canada Governor Stephen Poloz kept his main interest rate unchanged and said the risks of inflation staying below target “appear to be greater” in an economy that’s two years away from reaching full output.
Canadian stocks rose, rebounding from the biggest drop in a month yesterday, as Corus Entertainment Inc. posted higher-than-estimated profit and Bank of America Corp. advised buying Thompson Creek Metals Co. shares.