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.
Canada’s jobless rate unexpectedly fell to the lowest in almost five years in September as young people dropped out of the labor market, helping pull the participation rate to the lowest in more than a decade.
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.