The company hired to find a replacement for departing Bank of Canada Governor Mark Carney is looking for a star external candidate, even as consensus builds around Senior Deputy Governor Tiff Macklem as the front-runner for the job.
Canada’s government bond returns are lagging behind the rest of the world this month for the first time since July as investors bet the nation’s central bank may increase interest rates sooner than analysts expected.
Canada’s dollar gained for a second consecutive month, reaching parity with its U.S. counterpart for the first time since April, on speculation an easing of monetary policy by the Federal Reserve will spur global growth.
Credit markets indicate investors are becoming certain the Bank of Canada will raise interest rates at a second consecutive meeting after the country posted the largest quarterly gain in employment on record.
The Bank of Canada will probably keep its key interest rate unchanged today and may emphasize the risks to Canada of a strong dollar and uneven global growth rather than give hints on the timing of the next tightening.
Canada Housing Trust, the financing arm of the nation’s housing agency , had to offer a higher premium to sell mortgage bonds as investors were concerned about contagion from the European fiscal crisis.