Markets, already betting heavily that the Bank of Canada will raise interest rates again this month after Friday’s eye-popping jobs report, are waiting for two key surveys from the central bank this morning, the Business Outlook Survey and the Senior Loan officer Survey.
The first, said BMO Nesbitt Burns economist Robert Kavcic, will probably show "a maturing economic recovery." Projections for sales growth, investment in machinery and equipment, and employment should all remain strong, though the pace of projected growth could ease, he said.
As for the loan officer survey, Scotia Capital economists Gorica Djeric and Derek Holt warned investors to be careful as to how they interpret the results.
"It will likely show further net easing of credit conditions, but too many clients misinterpret it as representing the level of tightness," they said. "Instead, it shows the marginal change in tightening or loosening of credit in Canada. As such, modest easing of conditions today only begins to chip away at the tightening that had occurred from late 2007 through 2009."
