Coming up in the global economy this week, euro-area inflation may have picked up in November from a four-year low the prior month, demand for U.S. durable goods excluding transportation equipment probably improved for the first time in four months and the Brazilian central bank will probably increase its benchmark interest rate. Elsewhere, strikes by auto and mine workers probably caused South Africa’s economy to slow last quarter, while Sweden’s rebounded after shrinking from April through June.
Bank of Canada Governor Stephen Poloz surprised investors by dropping language about the need for future interest rate increases, a move that’s leading to investor speculation about possible rate cuts.
Bank of America Corp. today moved back its prediction for when Canada’s central bank will raise its policy interest rate to the first half of 2016, the same day the International Monetary Fund said an increase is expected late next year.
Canada’s central bank is expected to raise interest rates in the second half of next year, the International Monetary Fund said, which is sooner than bond investors and some domestic economists predict.