The Bank of Canada monetary policy statement from July meeting

Stephen Poloz. iPolitics  Matthew Usherwood

The central bank says Canadian growth will continue to see bigger contributions from exports and business investment, while it expects household spending to represent a smaller share due to the dampening effects of higher interest rates and stricter mortgage rules.

Poloz recently said the impacts of the U.S. Yet, the Canadian dollar is lower, reflecting broad-based U.S. dollar strength and concerns about trade actions.

The U.S. dollar rose as the market put aside trade tension fears and focused on an expectation-beating inflation report, which increased prospects that the Federal Reserve will raise U.S. interest rates another two times this year.

The bank's relatively sanguine view of the trade risk boosted the Canadian dollar to its strongest in almost four weeks, and economists said they expected the central bank to hike again by year end.

The Canadian dollar weakened to a more than one-week low against its USA counterpart on Wednesday as broad-based gains for the greenback offset an interest rate hike by the Bank of Canada and the prospect of further monetary policy tightening.

More news: England fans make late dash to Russian Federation for World Cup semi-final

Thanks to stronger economic data, experts are predicting governor Stephen Poloz to hike the rate from its current level of 1.25 per cent.

Poloz also signaled he was comfortable with how financial markets were interpreting the central bank's message, noting the hike was "highly anticipated".

Money markets see a almost 70 per cent chance of further Bank of Canada tightening by December.

The bank said USA steel and aluminum tariffs imposed in June and retaliatory countermeasures by Canada in July would trim exports, imports and economic growth, and boost inflation, but strong global demand and higher commodity prices were offsetting the tariff headwind.

Scott Hannah says higher interest rates have also helped to cool down the country's real estate markets, helping future homeowners. CPI inflation is expected to edge up further to about 2.5 per cent before settling back to 2 per cent by the second half of 2019.

Related News:



Most liked

England United: How Gareth Southgate's Young Lions Have Brought a Country Together
Phillip Schofield embraced Waistcoat Wednesday on 11 July, gearing up for the World Cup semi-finals between England and Croatia. If anyone doubted that, they only had to listen to the words of Southgate .

Trump administration cuts grants that help consumers get ACA coverage
The Retail Industry Leaders Association (RILA) was quick to condemn the proposal, saying it will punish American consumers. A full-blown global trade war would shave 0.4 percentage point off world growth, according to Bloomberg Economics.

Meghan Markle's outfit sends message to New Zealand designer
This marks the couple's first foreign visit as husband and wife after tying the knot in Windsor, England, back in May. Taoiseach Leo Varadkar welcomed the new Duke and Duchess of Sussex to the government buildings on Tuesday.

Iran slams Trump's 'interfering' remarks on OPEC
The U.S.is reimposing sanctions on Iran, after President Donald Trump withdrew the U.S. from the Iran nuclear agreement in May. Iran plans to reduce its global trade relations only to countries that buy its crude oil , an Iranian MP told Iranian media.

Has Mesut Ozil played his last game for Germany?
The father of Mesut Ozil believes that his son was made a scapegoat because of the departure of Germany from the world Cup . Ozil has still not commented, however, which is something DFB chief Reinhard Grindel says needs to be rectified.

Aaron Finch likely to lead Australia's ODI side as well
India beat England by 2-1 to win the three-match series while Pakistan edged Australia in the final to lift the tri-series title. Both teams are done with their rotation policy and they would be eager to play their full strength squad .

George Clooney reportedly sustains minor injuries in scooter crash in Italy
Clooney has a home on Lake Como on the Italian mainland. "The driver decided to make an abrupt right turn and clipped George". Reports from Italian broadcaster TGR , suggest the 57-year-old Sonning resident was taken to hospital after the crash.

Myanmar: Court charges Reuters journalists with obtaining secret state documents
"We will face the court and are not shaken by the decision to charge us with the secrets act", Wa Lone said after the hearing. Tirana Hassan, Amnesty International's director of crisis response, said: "This is a black day for press freedom in Myanmar".

US Embassy in London alerts Americans of possible violence during Trump visit
It includes "keep a low profile " and 'exercise caution if unexpectedly in the vicinity of large gatherings that may become violent '.

Turkey: President to make top military appointments
Prime Minister Binali Yildirim now goes down in history as the 27th and final holder of the post in Turkey. Turkey narrowly approved the executive presidency in a contentious referendum a year ago .

Facebook hit with first fine in Cambridge Analytica data breach scandal
It's also about half of what the Spanish data protection authorities past year extracted from to the firm for privacy failings. The penalty could be just the first in what might become several fines for Mark Zuckerberg as the Information Commissioner's.

Ironic twist to French fears in semi-final win, says Hugo Lloris
That evenness is why France is the team to beat in the mind of Jeffrey Marcus, publisher of the World Cup newsletter "The Banter". Didier Deschamps issued a warning that France will continue to "climb mountains" after reaching the World Cup final.

Rick Zamperin: Kawhi Leonard joining the Raptors is a longshot
And for someone like Kawhi, you absolutely have to get something in return. Leonard is an attractive piece to add to their roster.

Serena Williams withstands challenge to book spot in Wimbledon semifinals
She was the aggressor throughout, hitting 33 winners to Cibulkova's six, but also doubling her opponent's unforced error count. Watched from the stands by her friend and mega-star rapper Drake , Serena struggled to hit the right notes in the first set.

JOAQUIN PHOENIX's JOKER Movie Gets Greenlight
THR reports Phillip's project will provide a darker depiction of the Joker that has never been seen in previous DC flicks. This standalone project is just one of the Joker-related movies that DC now has in production.