Bank of Canada keeps key interest rate steady at 1.75%

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

The bank's governing council will also consider positive signs on trade, including a cease fire between China and the US and the lifting of American tariffs on Canadian goods, he said.

Bank of Canada governor Stephen Poloz will share his latest take on the economy Wednesday in an update that's expected to signal more patience on the key interest rate.

In its April outlook, the bank predicted relatively weak growth of 1.3 per cent in the second quarter.

"Recent data show the Canadian economy is returning to potential growth", the Bank of Canada said in a statement.

Fallout from the uncertain worldwide trade environment was also reflected in the bank's updated economic projections, which were also released Wednesday in the bank's quarterly monetary policy report.

The decision Wednesday kept the interest rate at 1.75 per cent for a sixth-straight meeting as Canada rebounds from a weak stretch that almost brought the economy to a halt in late 2018 and early 2019.

The Bank of Canada might not be such an outlier after all. The bank's Wednesday forecast of 1.3 per cent growth for 2019 is just below the average private sector forecast of 1.4 per cent. "We continue to look for the Bank of Canada to cut interest rates in January 2020". The currency even gained on the United States dollar, which weakened due to the outlook for interest rate cuts from the Federal Reserve.

More news: Jeremy Corbyn says Labour will back Remain in second Brexit referendum

Even with the unexpectedly strong rebound, those looking for fresh hints about the timing of the bank's next policy move - hike or cut - will likely have to wait a little longer, several experts say.

In testimony to US lawmakers Wednesday, Fed Chairman Jerome Powell seems to have pushed the central bank closer to cutting interest rates this month by saying the economy continues to face downside risks including the U.S.

China's recent trade actions on meat and canola products from Canada are expected to lower exports by 0.2 per cent, the bank said.

Market Response: In reaction to the more cautious BoC statement, the CAD drop against the Dollars with USDCAD back above the 1.3100 handle to test the top of its recent range at 1.3140.

The Bank of Canada in its latest quarterly outlook said trade uncertainty will reduce business investment by three per cent in 2021, a loss of about $8 billion.

Global trade tensions, meanwhile, have escalated, particularly between the US and China, forcing policy makers to mark down their projections for global growth and lower estimates for business investment and exports. Eastern (1400 GMT), in which it is widely expected to hold interest rates steady at 1.75%.

The central bank revised its forecast to an annual rate of 2.3 per cent from 1.3 per cent in April. "For the USA divisions, we incorporate moderate NIM (net interest margin) compression in 2019-21E". The Financial institution of Canada is determined to present one other hobby-rate announcement on Wednesday, which follows the news final week that the Canadian economic system shed around 2,200 jobs in June (despite the indisputable truth that the unemployment rate remained at a reach-account low).

Related News:



Most liked

Biden says he was wrong in comments about segregationists
Overall, Harris raised more than $23 million since launching her campaign in January. 'Sure they were going to come after me. Still, this weekend was Biden's second time in the first-in-the-south primary state since the furor unfolded.

Cardinals Select Safety Jalen Thompson In Supplemental Draft
Under general managers Jerry Reese and Ernie Accorsi (1997-2017) the Giant did not select a player in the Supplemental Draft. However, Tony Pauline wrote when Simms declared for the Supplemental Draft that he comes with "a lot of character concerns".

Afcon 2017: Fan predictions before Nigeria v South Africa quarter-final
I think everybody here has been criticised one way or another but you don't let that get to you", said Ighalo. They were however shocked by debutants Madagascar in their final group game, losing by two goals to nil.

Trump touts his record on environment
They have also criticized the administration for allowing the United States to slip on other basic measures of environmental health such as air pollution and enforcement.

Shaun Livingston not planning to retire after being waived by Warriors
The waive-and-stretch - spreading $666,000 over three years - keeps Golden State slightly under the $138.9 million tax apron. Livingston, 34, still has intentions of playing at least one more season, which would be his 16th year in the league.

Kamalvandi: Tehran's next option is 20% uranium enrichment
He warns London: "You are an initiator of insecurity and you will understand its repercussions", without elaborating. Shamkhani went on to criticise European countries for their "lack of will" in providing relief from USA sanctions.

American Airlines sees $185 million profit hit from Boeing MAX grounding
The company delivered 42 Dreamliners in the second quarter, up from 36 in the first quarter and 39 in the fourth quarter of 2018 . But the Max has been grounded worldwide for almost four months, since the second of two crashes that together killed 346 people.

Oil Prices Slips as Trade Wars Over Shadow Demand Concerns
OPEC and its allies agreed last week to extend their supply-cutting deal until March 2020. It was the sixth consecutive month that the EIA revised its 2019 demand forecast.

IBM completes $34-billion acquisition of Red Hat
The organization will also keep its Raleigh, N.C. headquarters, as well as the " Red Hat " brand. Almost a year after IBM purchased Red Hat , the $ 34 billion acquisition was recently finalised.

Merkel seen shaking for third time in weeks
Mrs Merkel has carried on with her scheduled appointments since the incident, and no official explanation has been offered. The second incident over a week later, which occurred indoors, she tried to explain with a psychological disposition.

Brexit: Ex-PM vows legal action if UK Parliament suspended
Johnson faced rival Jeremy Hunt in a television debate last night, in which most agreed Hunt had performed better. Sir John said "we carried the election until nearly the very last date" and it was an "absurd charge".

Joaquin Phoenix’s Joker Is Already Better Than Jared Leto’s Clown Prince
Empire also published a new photo of Joaquin Phoenix , in which he can be seen applying his Joker makeup. Francis Conroy will play the position of mom of Arthur i.e Penny Fleck.

New Zealand wins toss, bats 1st vs India
However, he used Yuzvendra Chahal's hilarious meme replacing it with Manjrekar's face and has urged him to unblock him on Twitter. Stead is picking 300 to be the magic mark at Old Trafford , especially with a new wicket being prepared for the occasion.

China shares fall as June producer prices fuel growth, deflation fears
Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite Index down 0.44 percent, at 2,915.30. The bureau also said that producer prices were flat on year in June and down from 0.6% in the previous month.

Instagram is hoping to combat cyber bullying via two new tools
When a user restricts someone, for example, that poster can see only their comments on the user's post, according to the company. The company said young people are often "reluctant to block, unfollow, or report " bullies for fear of escalating the incident.