Growth in the United States, more stable Eurpean economy will help

TORONTO – The global economy is headed for a better year in 2014 on the back of growth in the United States and more stable conditions in Europe, says BMO’s chief economist Doug Porter.

Porter made his comments at a Toronto Region Board of Trade event on Wednesday.

Porter also predicts the U.S. economy will grow at a faster pace than Canada’s for the next few years, helped by a comeback in house prices south of the border.

Growth in the U.S. economy should also “put a floor under” commodity prices, says Porter, but they’re unlikely to reach the peaks they have seen over the past years.

Porter also says he expects the Bank of Canada will keep hold rates at one per cent for at least another year.

Porter predicts the benchmark rate will go up by 50 basis points in July 2014, slightly before the Federal Reserve in the U.S. raises interest rates.