Bank of Canada Governor Stephen PolozReuters/Chris Wattie
The Bank of Canada will announce its latest interest-rate decision at 10 a.m. ET.
Economists expect the bank to hold its key interest rate at 1% as it eyes a possible slowdown in the housing market. The federal government is tightening the rules governing who qualifies for a mortgage to cut the share of borrowers that default on payments.
On Friday, Statistics Canada reported that Canada’s unemployment rate fell to the lowest level since 2008, and its economy added 441,400 new full-time jobs.
But uncertainty about the housing market and NAFTA could keep the BOC on hold this time. Also, the BOC raised rates at back-to-back meetings in July and September.
“With employment rising sharply last month and oil prices near their highs for the year, the central bank may put out a more hawkish statement than expected,” said Fawad Razaqzada, a technical analyst at Forex.com. “If so, this could boost the Canadian dollar, leading to another drop in the USD/CAD.”