The main event for Canadian investors since our last issue was the Bank of Canada’s recent interest rate announcement and Monetary Policy Report (MPR) where it clearly laid out the case for raising rates before long. It upgraded its growth outlook for 2012 to 2.4%, implying that the slack in the economy would be eliminated sooner than previously expected. Moreover, the central bank seems more comfortable with the risks that remain. The economic environment is characterized as one in which emerging market economies achieve a soft landing, the U.S. economy grows at a steady pace and Europe emerges from its recession before long.
