16:37 EDT - Scotiabank has revised its Bank of Canada forecast and now
believes it will be on hold until 2014, compared to Scotia's earlier
3Q of 2013 view. It says the tail risks on both sides are significant,
but thinks a policy hold that goes on considerably longer is the
bigger risk. Geopolitical risks are likely to remain a key factor for
a long time yet, but the heart of the matter is a domestic variable,
the output gap, Scotia says. Its growth forecasts for the Canadian
economy are lower than the BOC's, and that means Scotia doesn't see
that gap closing until after the central bank does, it says.
(don.curren@dowjones.com)
(END) Dow Jones Newswires
August 01, 2012 16:37 ET (20:37 GMT)
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