Market Expectations: Interest Rates and Surprise Index

market expectations: Investors are hunting for clues on whether Poloz is swayed by recent signs of economic weakness or sticks with his desire to boost interest rates back to neutral, according to The Toronto Star. JOHN WOODS / THE CANADIAN PRESS Citi's Economic Surprise Index, which tracks the difference between market expectations for data and their actual values, has been trending at the lowest level since last summer and has been below zero since mid October around the time of the Bank of Canada's last monetary policy report. While his one-page decision is expected to keep borrowing costs unchanged, here is a sampling of data that highlight some of the headwinds facing Canada's economy Bank of Canada Governor Stephen Poloz shows off Canada's new 10 banknote at a launch at the Canadian Museum For Human Rights in Winnipeg, Nov. 19. That constant stream of disappointing numbers could give pause to central bankers that refer to themselves as data dependent. The composite gauge's first decline since January 2016 was largely driven by pullback in S&P/TSX Composite Index, which fell 6.5 per cent on the month, as well as marked declines in commodity prices. The Macdonald Laurier Institute's Leading Indicator fell 0.1 per cent in October. (news.financializer.com). As reported in the news.