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Canada’s Key Rate Set to Lag Fed’s for First Time Since 2007

  • BoC’s Poloz focused on U.S. divergence since oil crash
  • Poloz says only fresh shock would prompt cutting 0.5% rate
Bloomberg business news

Poloz: Canada Economic Uncertainty High After Trump Win

Canada and the U.S., among the world’s biggest trade partners, are diverging when it comes to how their central banks view the recovery.

That’s reflected in the odds investors are assigning to a rate increase this month at the Bank of Canada (zero) versus the Federal Reserve (100 percent). Governor Stephen Poloz makes his decision Wednesday at 10 a.m. from Ottawa. A rate increase from the Washington-based Fed on Dec. 14 would take the U.S. past Canada for the first time since 2007.