The headline reading for Canadian inflation is expected to expand 1.1% in October, which would mark the slowest pace of growth since June 2010, and easing price pressures may keep the Bank of Canada (BoC) on the sidelines as Governor Mark Carney sees a diminishing threat for an asset bubble. As the record rise in household indebtedness tapers off, we should see the BoC endorse a more neutral tone for 2013, and the shift in central bank rhetoric should further weaken the Canadian dollar as market participants scale back bets for a rate hike. The resilience in private sector spending paired with rising input costs may ... (full story)