RBC Financial Markets Monthly For July 2012

Highlights from this month’s Financial Markets Monthly:  

  • The recent run of disappointing data points to weaker near-term growth than we were previously expecting, prompting us to make broad revisions to our forecasts.
  • Against this backdrop, policymakers have gone on the offensive in recent weeks by implementing an array of measures aimed at supporting economic stability.
  • The Fed announced an extension of ‘Operation Twist’ to the end of 2012; however, further policy accommodation could be called on if economic conditions worsen.
  • The economic backdrop suggests that the Bank of Canada will not likely make any changes to policy this year and we moved our call for the first rate hike to the third quarter of 2013 from the fourth quarter of 2012.  

Download the complete report here.

Courtesy of:

Jeff Fraser | Mortgage Specialist, RBC | Royal Bank of Canada | T. 604-340-1809 | F. 604-602-0094 | E. Jeff.fraser@rbc.com

 

 

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