Bank of Canada Governor Stephen Poloz will probably keep the benchmark interest rate unchanged today as he weighs the risks posed by inflation that’s been below target for more than a year against concerns that lower borrowing costs could lead consumers to add to record debts.
Canada’s dollar strengthened against all 16 of its most-traded counterparts as global stocks rallied and Potash Corp. of Saskatchewan Inc. received a $39 billion purchase offer, boosting demand for growth assets.
Canada’s dollar fell the most in a month versus the greenback and traded near a seven-month low against the euro before a meeting tomorrow at which economists predict the Bank of Canada will leave interest rates unchanged.
The announcement by John Murray that he’ll retire from the Bank of Canada next year leaves Governor Stephen Poloz facing the prospect of having two new faces on the bank’s six-member rate-setting panel less than one year into his tenure.
Traders are betting the Canadian dollar fell too far, too fast in its worst start to a year in more than four decades, as rising commodities prices and a forecast budget surplus damp speculation for interest-rate cuts.
Cedar Fair LP , the operator of amusement parks that called off a takeover by an Apollo Management LP affiliate, is marketing debt as investors may regain their appetite for high-yield, high-risk bonds.