Bank of Canada holds interest rate, warns economy’s resilience to be ‘tested’

Governor Stephen Poloz’s team is warning that the resilience of Canada’s economy will be increasingly tested

The Bank of Canada is keeping its key interest rate on hold in a decision that positions the country as an exception among advanced economies already responding to the weakening world economy.

Governor Stephen Poloz’s team is warning that the resilience of Canada’s economy will be increasingly tested by persistent global trade conflicts and uncertainty.

The central bank’s decision to hold the rate at 1.75 per cent today was widely expected by financial markets. The benchmark has now been at the same level for just over a year.

The bank says the global outlook has continued to deteriorate since the summer and that Canada is feeling the effects.

ALSO READ: Bank of Canada holds interest rate as it takes stock of trade war impacts

It says economic growth here is expected to be 1.5 per cent in 2019 before picking up its pace to 1.7 per cent next year and 1.8 per cent in 2021.

The bank notes that the domestic economy has held up well in many areas — employment has remained strong, wages have advanced in some regions and housing activity has expanded in most markets.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Trudeau to seek 10 days of paid sick leave for all Canadian workers

Paid sick leave is key to keeping COVID-19 spread under control, prime minister says

City of Red Deer down to one confirmed active case of COVID-19

18 new cases were confirmed across the province Saturday

Facing changes together: Your community, your journalists

The Rimbey Review covers the stories that matter to you and to our community

Shoppers line up in downtown Montreal as retailers reopen to public

Shoppers line up in downtown Montreal as retailers reopen to public

‘It’s awful’: Calgary homeless sleeping outdoors over fears of catching COVID-19

‘It’s awful’: Calgary homeless sleeping outdoors over fears of catching COVID-19

Use pandemic to stop brain drain, MPs told, as payments for CERB top $40 billion

Use pandemic to stop brain drain, MPs told, as payments for CERB top $40 billion

Ontario delays allowing bubble families, larger gatherings as COVID cases rise

Ontario delays allowing bubble families, larger gatherings as COVID cases rise

Alberta’s United Conservatives among parties seeking COVID-19 wage aid

Alberta’s United Conservatives among parties seeking COVID-19 wage aid

Minds behind pandemic predicting algorithm already thinking about future beyond COVID-19

Minds behind pandemic predicting algorithm already thinking about future beyond COVID-19

Celebrating May long with the new normal

Celebrating May long with the new normal

Vermilion Energy CEO leaves company, executive committee to take over role

Vermilion Energy CEO leaves company, executive committee to take over role

Most Read