Bank of Canada Holds Interest Rates at 1.25 Percent

Bank of Canada Holds Interest Rates at 1.25 Percent

On Wednesday, the Bank of Canada chose to keep its benchmark interest rate at its current status of 1.25 percent, but gave a word of caution regarding future hikes.

Today is the most important day, and we'll see the Bank of Canada's decision on interest rates, as well as the Bank's Monetary Policy Report.

Mr. Poloz said this "investment/export nexus", as he called it, is at the heart of the interest-rate question for the Bank of Canada.

Exports and business investment in Canada have been held back by competitiveness challenges and trade-policy uncertainties, which include escalating geopolitical conflicts that risk damaging global expansion, the bank said. The mere fact that the Bank of Canada now sees inflation nudging above 2 per cent for the next couple of years does not, on its face, imply that the bank will be more aggressive on rate.

Most economists expect the central bank to retain its key rate at 1.25 per cent, the level it has been at since the last quarter-point increase in January. The Monetary Policy Report notes rebounding conditions, but areas of concern remain: youth labor market participation is still seen as weak, while long-term unemployment is seen as elevated.

The Canadian dollar slipped after the report, down 0.4 percent to C$1.202 per USA dollar at 10:44 a.m. Toronto time.

Will Pound to Canadian Dollar (GBP/CAD) Exchange Rate Recover on Forecast-Matching BoE Interest Rate Hike?

EU Says US Tariffs Are 'Distorting' Global Trade Flows
Russian Federation has never issued a WTO dispute complaint against the US since Russian Federation joined the trade body in 2012. The Trump administration has rejected those arguments and says the measures are for national security reasons.

At 15:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was slightly bearish at -59.9176, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 18.8721. "The reason is not because a hike in administered rates is expected rather, it is a result of some conflicting domestic themes - each arguing for a conflicting policy response - that are creating legitimate confusion over the path of rates".

What sector will play the biggest role in shaping Canada's economy this year?

Inflation in Canada is close to 2 per cent as temporary factors that have been weighing on inflation have largely dissipated, as expected. Others argue that the BoC is likely to raise rates following the BoC's business outlook survey (which was fairly optimistic) and Trump's focus on currency devaluation by trading partners. "Those capacity issues require both a higher level of trend labour supply as well as capital investment", says Pollick.

Annual potential output growth is projected to remain at 1.8% over the projection horizon, before increasing to 1.9% in 2021. The outlook for the US economy has been further boosted by new government spending plans. "This is the rub and, creates an extremely dynamic environment for the Bank", Pollick adds.

Growth in consumption remains robust, supported by strong labour income growth. That would increase Canada's ability to cultivate its exports, which would probably mean more economic growth - and faster growth would typically suggest earlier/more rate increases.

Since then, there has been fresh fear that if inflation slows and wage growth picks up, BoE policymakers may refrain from acting due to the economy "self-regulating".

This helped the pair to climb from the low 1.25 region towards the 1.26 region where it trades as of this writing.

Related News:

  • 'We Are Not Lazy', Nigerian Youths Reply Buhari

    'We Are Not Lazy', Nigerian Youths Reply Buhari

    Their future was mortgaged by past leaders like President Buhari, who had everything at their beck and call as youths. Adesina, however, said that the storm over the President's comment was the handiwork of "manipulators and twisters".
    2 years after Prince's death, prosecutor to update probe

    2 years after Prince's death, prosecutor to update probe

    The younger Kornfeld, a pre-med student, was one of the three people who found Prince dead. A medical examiner found out that Prince died from an accidental Fentanyl overdose .

    Last Week The Alumasc Group plc (LON:ALU) Ratings

    DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods worldwide. Morgan Stanley maintained Whitbread PLC (LON:WTB) on Thursday, March 29 with "Equal Weight" rating.
  • Cardi B Talks Twerking Performance at Coachella on 'Ellen'

    Cardi B Talks Twerking Performance at Coachella on 'Ellen'

    Then Cardi joked, "I was just trying to show the world how I got pregnant in the first place". Cardi instantly said she wants a Lamborghini truck because she needs a "baby auto ".
    Syria is a no-win situation for US

    Syria is a no-win situation for US

    Survivors reached by the Associated Press said they were overwhelmed by the smell of chlorine on the night of April 7. The US has previously said it fears Russian and Syrian forces have spent recent days destroying any remaining proof.
    NFL Schedule to be Released Thursday LIVE on TV

    NFL Schedule to be Released Thursday LIVE on TV

    Because they finished last in the NFC West a year ago , they will also face the last-place teams from the NFC South and NFC East. The special will be hosted by Scott Hanson and feature NFL Network analysts Steve Mariucci , Kurt Warner and Maurice Jones-Drew.
  • CPI(M) calls for unity of secular, democratic forces to defeat BJP

    CPI(M) calls for unity of secular, democratic forces to defeat BJP

    The Party Congress , which takes place once in three years, is the highest decision making body of the CPI (M). The CPM General Secretary pointed out that the Left alone is capable of coming up with a policy alternative.
    VW's Electrify America to install EV chargers at Walmart stores

    VW's Electrify America to install EV chargers at Walmart stores

    The organization expects many EVs to use up to 150kW chargers by 2020 as the batteries in these cars continue to get bigger. Tesla isn't the only company developing convenient electric vehicle (EV) charging solutions.
    Wenger to use West Ham match as Europa League preparation

    Wenger to use West Ham match as Europa League preparation

    At the back end of past year we covered reports from Turkey that Tottenham have been tracking Yazici this season. Arsenal may yet offer Santi Cazorla a new contract despite the Spaniard not playing since October 2016.
  • Celtics take commanding lead vs. Bucks in the playoffs

    Celtics take commanding lead vs. Bucks in the playoffs

    Instead, Rozier has been the driving force behind a Celtics team that is in a position to take a 3-0 lead in the series. The Celtics have won four of the five previous playoff series between the teams and have an 18-11 edge in games won.
    Timeline of investigation of Missouri governor's charity

    Timeline of investigation of Missouri governor's charity

    These are the second criminal allegations brought against Greitens, who is already facing invasion of privacy charges. Greitens obtained an electronic donor list given by The Mission Continues for that organization's internal purposes".
    Nikita Kucherov scores twice; Lightning up 3-1 on Devils

    Nikita Kucherov scores twice; Lightning up 3-1 on Devils

    Alex Killorn got the first penalty at 7:47 with a hook and 25 seconds later Cedric Paquette tripped Taylor Hall . Kucherov collected the loose puck right in front and put it high into the net for his third goal of the series.

Most liked

Saquon Barkley's agents don't want him going to Browns
Asked if the report were true that Roc Nation advised the Penn State product to pull a Manning, Miale said "no". Miller also projected in his latest mock draft that Barkley will slide to the Browns at No. 4 overall.

Solano County gets a 'C' for air quality
Providence County received a D for its ozone, or smog, pollution - a small improvement from the F it received in last year's report.

CSK organises special train to Pune for deprived fans
The fans will leave Pune on Saturday, with all their expenses including food and accommodation being borne by the franchise. Having seen their home team not compete in the IPL for the last two seasons, Chennai was to host seven matches of IPL 2018.

Weather Forecast: Drier and warmer weather ahead
Winds will die down overnight setting the stage for near freezing temperatures and areas of frost for Thursday morning . Meanwhile on Saturday , the high moving in at the surface won't be in sync with the upper levels of the atmosphere.

Britain's Queen Elizabeth backs her son Charles to take on Commonwealth role
May will lobby for Charles to be the queen's successor when the issue is discussed over the next two days. Queen, the Head of the Commonwealth, opened the summit for what may be the last time today.

Spurs star Kane "not bothered" by goal appeal backlash
Liverpool are known for their attacking play but this season, Klopp has managed to build a side that can defend. If Liverpool do make it through to the final, they will then certainly be second favourite to lift the trophy.

AfriForum standing its ground in prosecuting Malema, despite his anger
Kriel points out that apart from this corruption case AfriForum is also busy with two other cases which implicate Malema. AfriForum , in conjunction with AfriBusiness, is now preparing for a case of contempt of court by Malema.

Linden first United States woman since '85 to win Boston Marathon
Instead, the longtime Harwich runner rode along the route in a spiffy SUV as an Honorary Relay Team Captain. After the Boston Marathon bombing in 2013, Henry said there was a large police presence.

You can now check your CoD stats with Amazon Alexa
The Alexa Skill also provides updates on various achievements while comparing your progress to that of other players. Stay on top of you contracts and orders with your newest ally, the Call of Duty Alexa Skill .

Procter & Gamble pays €3.4B for Merck KGaA consumer health unit
Merck's over-the-counter products generate close to $1 billion in annual sales . Procter & Gamble shares are down nearly 13 percent in the a year ago .

EPL: Vincent Kompany urges Manchester City to retain title next year
The PFA team of the year players has been unveiled with Manchester City players dominating the star-studded line-up on Wednesday. Manchester City dominates with five players: Kyle Walker , Nicolas Otamendi, David Silva, Kevin De Bruyne and Sergio Aguero.

President Trump files extension for 2017 tax returns
Steve Stivers, chairman of the National Republican Congressional Committee, said Tuesday, of the Tax Cuts and Jobs Act. Sharpe continued, "If they file an extension it does eliminate some penalties but not everything".

Death of McMaster's father being investigated as suspicious
McMaster, died in Philadelphia on April 13 and officials are investigating the incident as a suspicious death. Employees also reportedly told the McMaster family that records related to his death had been falsified.

Netflix's New 30-Second Mobile Previews Look Like Snapchat and Instagram Stories
The preview of show episodes and movies are similar to Instagram Stories because of the circular thumbnails and virtual playback . As of now, the feature is only available for iPhone users - however, Android phones will follow soon, according to Netflix.

Stop unproductive phone calls, meetings: Tesla CEO Elon Musk to staff
Tesla didn't dispute the analysis but says it's made significant strides in worker safety since then. CEO Elon Musk's personal preferences were invoked as reason not to address potential hazards.