Today’s rule set is its a game of change, as even the best economists are having a rough time predicting market directions. Just a few months ago, the stage was set for interest rate increases. Then the bank of Canada surprised the market with a rate drop.
South of the border, the federal reserve bank, has been preparing markets for an increase to U.S rates. Poor U.S jobs growth numbers, just announced now has economists predicting that the U.S fed will hold off on any rate rise until at least September.
After the bank of Canada’s sudden rate cut, economists were split on it being a right/wrong move. Now there is alignment that Canadian rates may take another cut or even two over the next 5 months. The takeaway – across the board, rate stability for a while longer.