On October 24 Bank of Canada is announcing its interest rate decision. It is expected to raise the interest rate, even though the most recent economic data were weak: inflation fell and so did retail sales. To a large extent, the declines were caused by lower prices of gasoline. As we will discuss in due course, the Bank of Canada does not pay much attention to the prices of gasoline because these are volatile and change all the time. It focuses more on the general state of the economy which is booming, and on the inflation rate, which is above target.
By the way, so it happens that only one Bank of Canada interest decision will coincide with the course. The Bank of Canada makes decisions once every 6 weeks; the next one will be right after we finish. So read reports about this one.
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