Economists say Canada won't raise rates for another year due to oil rout

Ottawa

BANK of Canada Governor Stephen Poloz will remain in interest-rate hibernation for another year as plunging oil prices raise concerns the nation's economic growth is in jeopardy, economists say.

Mr Poloz, who delivers the central bank's next rate decision on Wednesday, will hold off raising borrowing costs until 2016, according to the median forecast in a Bloomberg monthly survey, which previously predicted the governor would lift rates later this year. Economists also cut two-year yield forecasts by the most on record.

The central bank hasn't raised its benchmark interest rate since 2010 as it awaits an economic recovery that's in danger of fading. Crude oil, Canada's biggest export, is trading below US$50 a barrel, from US$107 in the summ…