Unusually uncertain times

- "In recent weeks, economic data have continued to be disappointing. U.S July durable goods orders were much weaker than projected suggesting business investments which have been an important source of growth so far might be running out of steam. It appears evident the U.S. economy will continue to need additional stimulus in order to close the current output gap and reduce the unemployment rate. Therefore, monetary policy can be expected to remain extremely accommodative well into the second half of 2011."
- "With the uncertainty about the U.S. economic outlook having increased in recent weeks, we believe the BoC will want to take a pause before further reducing the level of monetary stimulus. However as we expect the North American economy to avoid the feared double-dip, we still see the Bank raising its target rate from the current 0.75% to 1.50% in 2011."

NBC Monthly Fixed Income Monitor Sep2010

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