Expecting Bank of Canada to Leave Rates Unchanged

Matteo Radaelli submits: The ECB is widely expected to leave the rate unchanged at 1% at the close of its monetary policy meeting on Thursday, since economic data published in the last few weeks did not change the economic outlook depicted by ECB Chairman Trichet during the latest press conference in January. While economic activity continued dilating at the end of 2009, uncertainty as to the sustainability of current economic recovery remains high as a number of supporting factors are merely temporary.

TORONTO — Half of Canada’s primary dealers have recently pushed back forecasts for the timing of the central bank’s next interest rate hike, a Reuters poll showed on Friday after weak jobs and housing starts data suggested the economy will struggle in 2013. The economic figures released on Friday were the latest in a string of dismal indicators. Earlier reports had prompted the Bank of Canada to say on January 23 that a rate hike would be further in the future than it had once thought.

OTTAWA — When Bank of Canada governor Mark Carney moves onto his new U.K. job in July, it is likely little else will have changed back home. Interest rates will still be at near-record lows, and the economy will be continuing to churn out less-than-stellar growth. Not surprisingly, the central bank on Tuesday kept its trend-setting rate on hold at 1%, where it as been since September 2010. That is the longest stagnant period since the early 1950s.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.By Cees Bruggemans, Chief Economist of FNB.When should interest rates be raised, if at all, and by how much?

Matteo Radaelli submits: As widely expected, the ECB left rates unchanged at 1% at the end of Thursday’s monetary policy meeting. In the press conference, ECB President Trichet highlighted how inflationary pressures have increased in the last few weeks and said:

Dr. Stephen Leeb submits:Another difficult year is drawing to a close. While the stock market had rebounded very strongly from its March lows, the health of the U.S. economy is still very much in question. Of course, we will be very happy to see the worst of the recession behind us. A year ago, we were at about its worst point. For example, let’s take one metric, holiday sales. Last year, they fell 3.4 percent.

By David Papell Today, we're fortunate to have David Papell, Professor of Economics at the University of Houston, as a Guest Contributor.