- Bank of Canada
Canada's Ivey purchasing managers' index soared more than expected in November after the gauge fell to the lowest level in two months in October. Canada's Ivey PMI rose to 56.9 last month, with a reading above the 50-mark threshold indicating expansion in purchasing activity. The actual data overshot market expectations for 52.7 points after the index came in at 51.2 in October.
Earlier this week the Bank of Canada decided to keep interest rates unchanged to improve business conditions, but highlighted signs of broadening recovery as Canada heads into election next year. The BoC Governor Stephen Poloz indicated that interest rates will remain low until the excess capacity from Canada's economy is eliminated and inflation is brought in line with the 2% target. The central bank kept interest rates at a record low of 1% for more than four years. Officials saw signs of a broadening recovery in Canada's economy, which is benefitting from strengthening neighbour, the US, Canada's top trading partner. Robust exports translated into increased business investment and employment, pointing to a shift toward self-sustaining growth away from a consumer-led one. However, the central bank stressed that future global uncertainty is one of the biggest impediments to the Canadian growth.
© Dukascopy Bank SA