Economics

Soft Patch to Keep Bank of Canada on Sidelines: Decision-Day Guide

  • Poloz likely to hold interest rates steady again this week
  • Swaps trading suggests hiking cycle could already be complete
Photographer: Chris Roussakis/Bloomberg
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Canada’s recent dip into an economic soft patch will keep the country’s central bank from raising interest rates for a second straight decision Wednesday, with investors betting it may even be done with hiking altogether.

The Bank of Canada is likely to remain on hold for at least a few months as the country copes with turmoil in the oil sector and policy makers gauge the impact of volatility in financial markets. After that, views diverge.