Paul Vieira, Financial Post Published: Monday, September 15, 2008 OTTAWA -- The turmoil in U.S. banking circles may prompt Mark Carney, the Bank of Canada governor, to change course and cut interest rates next month, analysts said Monday.
As traders looked to the central bank for clues as to its next move, the Prime Minister, Stephen Harper, tried to brush off warnings of "doom and gloom" sparked by one of the biggest shakeups on Wall Street. He told reporters in a campaign stop in Ottawa that Canada's economic fundaments, especially those in the financial system, remain "solid."
While the Prime Minister tried to allay fears, market strategists say financial markets have started to price in a cut to lending rates the next time the Bank of Canada governors meet and unveil its next move on rates, on Oct. 21.
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