Bank of Canada stands firm behind mixed economic signals
J.P. Gervais on what he expects rates will do in 2019 based on the December 5 interest rate announcement from the Bank of Canada (BOC).
- Economy operates near capacity, yet inflation remains in line with the BOC target
- Exports growing, but trade tensions persist
- Business investment remains muted, and could pick up following recent tax incentives
The bottom line? Expect another rate increase in the early part of 2019. The BOC may be able to wait beyond the January announcement to get a better understanding of various economic indicators.
J.P. is the Vice-President and Chief Agricultural Economist at Farm Credit Canada. Prior to joining FCC in 2010, J.P. was a professor of agricultural economics at North Carolina State University and Laval University. He also held the Canada Research Chair in Agri-Industries and International Trade at Laval. J.P. is Past-President of the Canadian Agricultural Economics Society. He obtained his PhD in economics from Iowa State University in 1999.