Bank of Canada makes its latest interest rate announcement

Canadian dollar nears 8-month high ahead of Bank of Canada rate decision

The bank has held its overnight rate at 1.75% since last October.

Bank of Canada officials flagged elevated concerns about mounting global trade tensions, even as they left interest rates unchanged for a sixth straight decision and showed little willingness to consider easing policy any time soon. Consequently, the central bank forecasts 2019 growth at 1.3%, up from April's forecast of 1.2%, however, this remains below the 1.7% expected in January.

The central bank has long forecast that the economy would recover from a recent slowdown triggered by low oil prices and the dampening effect of interest rate rises.

The bank warned that worldwide trade disputes are having a "material effect on the global economic outlook".

The decision keeps the interest rate at 1.75 per cent for a sixth-straight meeting - and governor Stephen Poloz appears to be in no rush to make a move even as policy-makers in the USA and Europe signal they may introduce cuts.

"Growth in the second quarter appears to be stronger than predicted due to some temporary factors, including the reversal of weather-related slowdowns in the first quarter and a surge in oil production", the central bank said in a statement. It sees the economy slowing to 1.5 per cent in the current quarter.

Trump calls British ambassador to US 'a very stupid guy'
President Trump first struck back on Sunday, telling reporters that Ambassador Darroch "has not served the United Kingdom well". Britain said it would apologize directly to Trump and his daughter and White House adviser Ivanka Trump over the leaked memos .

The next scheduled date for announcing the overnight rate target September 4, 2019.

The loonie has been rallying since June when U.S. Federal Reserve Chair Jerome Powell struck a dovish tone during a monetary policy update and strongly signalled an upcoming rate cut.

The bank raised Canada's domestic growth target for 2019 to 1.3% from 1.2% but cut its 2020 growth forecast to 1.9% from 2.1%. Odds of a rate cut also ticked up higher, though investors are still not fully pricing in move over the next 12 months.

The Canadian dollar unwound its gains, touching 1.3143 to the USA dollar, or 76.09 US cents. "It seems quite possible that we are going to get a pretty meaningful series of interest rate reductions from the Fed going forward here, and the Bank of Canada, in contrast, is suggesting that to a large extent it is going to sit this one out". Among risks to the inflation outlook, the couple positive ones were stronger economic growth in the United States and stronger consumption in Canada, while the rest were negative: sharp tightening of global financial conditions, rising household debt in Canada, weakness of the Canadian housing market, weaker growth in China, and falling commodity prices. Eastern (1400 GMT), in which it is widely expected to hold interest rates steady at 1.75%. Traders had bet the Bank of Canada would not follow suit, helping push the Canadian dollar to near eight-month highs against the greenback.

He added that any rate cut by the U.S. Federal Reserve at one of its upcoming meetings would be a key development for the Bank of Canada. Macdonald said she doesn't think the anticipated US slowdown later this year will be enough to warrant a rate cut by the Fed.

Related News:



Most liked

United Kingdom seizure of Iranian tanker not to be left unanswered: senior cmdr
Allies would patrol waters near those USA command ships and escort commercial vessels with their nation's flags. Emmanuel Bonne, a French presidential envoy, is in Iran this week for talks aimed at resolving the crisis.

Call of Duty: Black Ops 4 is getting more zombie-themed content
It's boasting a map said to be '400%' larger than the fan favourite Nuketown Zombies one, and plenty of new enemies to tackle. Multiple zombie themed characters, weapons, and maps will be introduced into the game over the course of the operation.

Love Islanders debate who gets axed in show preview
Chris rates himself 7.2 out of 10 on the looks scale, describing his eyebrows as his best feature. "I am the full package I'd say. Following reports that show bosses prompted Maura to make a move on Curtis, a Love Island spokeswoman said: "This is untrue".

How to watch NYC's ticker tape parade for the U.S
The so-called ticker tape parade is named for the long strands of ticker tape that used to be showered down from office buildings. Fans who attended the World Cup finals in Lyon, France started chanting "Equal pay!" after Team USA won the championship game.

German Leader Angela Merkel Seen Shaking for 3rd Time in a Month
German Chancellor Angela Merkel has been seen shaking uncontrollably in public for the third time in a month. Merkel's public bouts of shaking have fuelled speculation about her health.

Nintendo Switch Lite’s lack of adaptability defeats the Switch’s objective
Nintendo notes that there will be support for all existing Switch titles, although some games will have restrictions. Building on the success of the original, Nintendo announced the second member of the Switch line - the Switch Lite .

Women's National Team Parades Through NYC's 'Canyon Of Heroes'
Joe Manchin introduced a bill Tuesday that would prevent federal funding from being used for the 2026 World Cup until the U.S. After beating the Netherlands 2-0 in Sunday's final, they hoisted the trophy for the second consecutive tournament.

Beyoncé Releasing New Single ‘Spirit’ For ‘The Lion King’ Soundtrack
You can now stream " Spirit " on all major platforms including her husband JAY-Z's Tidal , Spotify and Apple Music . Now, as the film nears its silver anniversary, Disney delivers a new take on the animated musical.

National Basketball Association to implement coach's challenge system for 2019-20 season
Lots of the talk Tuesday focused on how those outcomes came about, and whether the rules served all of the constituents. If a team requests a challenge without a timeout, a technical foul will be called, and the play will not be reviewed.

ICE, FBI reportedly scan driver's license photos for facial recognition searches
Angela Romero called the searches "government overreach" with the potential to spread fear. ICE spokesman Matt Bourke told the Times that the agency follows "established" protocol.

American Alison Riske upsets No. 1 seed Ashleigh Barty at Wimbledon
The Riske return game was key today: She won eight of 10 points played on Barty's second serve in the final set. Halep next will face Zhang Shuai of China, a 6-4, 1-6, 6-2 victor over Dayana Yastremska of Ukraine.

The Bachelorette's Jed Wyatt Asks Fans To Stop Harassing His Family
The boyishly charming Pilot Pete took Hannah on a flight over the Los Angeles area, even passing over the famed Bachelor mansion. But fear not, rose lovers - it seems as if Luke's horrific departure is just around the corner. "Today was a really good day".

Signing New Tottenham Hotspur Contract No-Brainer - Harry Winks
Winks came through the Tottenham academy and has gone on to appear more than 100 times for the Spurs first team. He is likely to leave the Cottagers this summer in order to continue playing in the Premier League.

Pogba saga is the least of Solskjaer's issues for Man United's preseason
Raiola also suggested that United should jump to Pogba's defence following the criticism he is receiving for wanting to leave. Juventus are also customers for Paul Pogba's services, but all signs point towards the midfielder heading to Spain.

Xbox One update makes Games Pass even better than ever
Play Later functions similarly to Netflix's Watch Later, in that it lets you make a list of games you want to visit at some point. The July update includes several new Alexa commands, including the command " Alexa, ask Xbox what's new on Game Pass? ".