Bank of Canada makes its latest interest rate announcement

Bank of Canada makes its latest interest rate announcement

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.

Magic Johnson: Lakers 'almost unbeatable' with addition of Avery Bradley
He was traded to the Clippers that same season in a deal highlighted by Blake Griffin 's being sent to the Pistons. The Los Angeles Lakers have signed guard Avery Bradley , it was announced today by General Manager Rob Pelinka.

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

Manhattan judge denies DOJ's bid to swap census case lawyers
Trump's administration has faced numerous roadblocks to adding the question , including the Supreme Court's ruling that blocked its inclusion, at least temporarily.

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.

South Africa - Africa Cup of Nations - 10 July 2019
Peep! We are underway in Cairo! "South Africans are not naturally mobile", he added. It's his first goal for the Super Eagles! .

Pixel Launcher in Android Q Gets Swipe Down to See Notifications Gesture
That last point seems awfully optimistic considering Samsung hasn't even managed to release its folding phone yet. In Beta 5, you can swipe in diagonally from the lower left or right corner to access Assistant.

`We have nothing to hide`, Iran envoy replies to Trump allegation
Zarif added Iran is limiting its commitments based on the paragraph 36 of the JCPOA. The U.S. backed out of that deal, but several European nations remain involved.

Solskjaer optimistic De Gea won't run contract down
You have to have the right players at the right price and if you look at the squad we've got now there are so many good players". They're fantastic players, there's loads of players here that I know are going to be successful at this club.

President Trump tweets support for Bernie Marcus
President Donald Trump said in December that he'd withdraw forces from Syria, declaring victory against Islamic State. During the ceremony, Trump brought up Wheeler and other aides to praise their environmental stewardship.

Nintendo Switch Lite official with 5.2in screen and built-in Joy-Cons
Nintendo has clarified that the back-of-box information for physical games, or Nintendo's website , will say if this is the case. Unlike the larger Switch , which can be played with Joy-Con controllers, the smaller Switch Lite features integrated controllers.

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.

Gulf States Likely To Be Impacted By Tropical Cyclone
Right along the coast south of Louisiana, water temperatures are now approaching 32ºC - more than ample fuel for a healthy storm. Heaviest rain totals looks to be across south central and southeast Louisiana with more than 7 inches possible.

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.

Bournemouth fans react on Tyrone Mings fee reports
Mings, who made 10 Premier League starts for Bournemouth after joining from Ipswich for £8m in 2015, was keen to join the club. Aston Villa have reportedly agreed a deal with Bournemouth for defender Tyrone Mings .

Piers Morgan to The Duchess of Sussex: 'Go back to America'
Meghan Markle delighted fans last week when she made an unannounced trip to Wimbledon to watch her friend Serena Williams play. The Sun has reported that the Duchess of Sussex is looking at adopting a rescue dog, to add to the two they already have.

Burger King Adds $1 Crispy Taco to Menus Nationwide
What Burger King didn't mention in the announcement, however, is just how long Burger King tacos have been kicking around for. Burger King is about to make vegetarian fast-food options far more exciting with the arrival of its new Halloumi burger.

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.