Shenfeld Says Canada to Raise Interest Rates in Early 2015

The Bank of Canada probably won’t raise interest rates until early 2015 as the economy benefits from stronger global demand, according to Avery Shenfeld, chief economist at CIBC World Markets.

The conditions for a rate increase “may finally fall into place” in 2014 and the central bank will tighten “in early 2015,” Shenfeld told investors at the Bloomberg Focus Day Symposium in Toronto.

The economy will expand by 2.3 percent next year, Shenfeld said, adding Canada isn’t suffering from a housing debt crisis.

“When it comes time to tap on the brakes,” he said “it’s not going to take as much” to influence indebted consumers and slow the economy.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Chris Fournier at cfournier3@bloomberg.net

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