Bank of Canada keeps key rate unchanged
But future hikes may be on the way
What does Trump’s election mean for the Canadian economy?
The former U.S. president’s second election victory sparks concerns over a ripple effect on the Canadian economy.
OTTAWA — The Bank of Canada left its benchmark interest rate unchanged today after raising it twice since the summer— but it signalled that future hikes are likely on the horizon.
In its scheduled announcement, the central bank says it held off this time in part because it expects the recent strength of the Canadian dollar to slow the rise in the pace of inflation.
The bank is also pointing to the substantial, persistent unknowns around geopolitical developments as well as U.S.-related fiscal and trade policies, like the renegotiation of the North American Free Trade Agreement.
However, the bank says while its still-low interest rate of one per cent will likely rise over time, the governing council will remain cautious when it comes to future increases.
MORE: Why banks are slow to lower lending rates, but quick to hike them
The central bank is also releasing updated projections that predict economic growth to moderate after a surprisingly powerful performance in recent quarters, as housing- and consumer-related contributions start to decline.
The bank forecasts growth, as measured by real gross domestic product, to slow from its exceptionally robust level of 3.1 per cent this year to 2.1 per cent in 2018 and 1.5 per cent in 2019.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
The crypto markets’ response to the U.S. election results
Trump win ignites crypto frenzy that sends bitcoin to a record high.
Why are Canadians still frustrated with the economy?
Inflation is down, wages are up. But the economic recovery has been uneven, with “two contradictory trends” shaping Canadians’...
CCB payment dates 2024 and 2025, and more to know about the Canada Child Benefit
Parents, here are the CCB payment dates for 2024, along with how much you can expect to receive each...
How will the outcome of the U.S. election affect financial markets?
Investors in Canada and the U.S. look forward to post-election certainty, but concerns remain about interest rates and global...
Canada’s economy news: Are we growing enough?
Economy stalled in August, Q3 growth looks to fall short of Bank of Canada estimates.
New to Canada? A new way to transfer your credit score
Equifax launches foreign credit score sourcing program for newcomers, building on a similar service offered by Nova Credit.
Making sense of the Bank of Canada interest rate decision on October 23, 2024
Created By
Ratehub.ca
Bank of Canada delivers half percentage point rate cut
The central bank lowers its key interest rate to 3.75% and says it now must keep inflation at 2%....
From Pokemon cards to music royalties: Do alternative investments work?
Alternative investments may bring to mind hedge funds or real estate. But niche collectibles are increasingly a part of...