Welcome guest.  ( Sign in )

B.O.C. Interest Rate announcement.

May 24, 2017 - Updated: May 24, 2017

Bank of Canada makes interest rate announcement

 

The Bank of Canada is sticking with its trendsetting interest rate of 0.5 per cent, saying uncertainties continue to overshadow the economy's stronger-than-expected start to the year.

In explaining its decision Wednesday to hold the rate, the central bank once again highlighted weak wage growth and the softening rate for underlying inflation as examples the economy still has room for improvement.

The bank's scheduled rate announcement comes after it raised its 2017 growth projection last month following a surprisingly healthy start to the year in areas such as employment, consumer spending and the housing markets. In Wednesday's statement, the bank added better business investment numbers to the list.

"Recent economic data have been encouraging,'' the bank said.

"Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions.''

The bank's statement, however, also predicted that the ``very strong growth'' over the first three months of the year will be followed by some moderation in the second quarter, even though at the same time it expects the U.S. economy to rebound.

Analysts had widely predicted governor Stephen Poloz to keep the rate locked at its very low level of 0.5 percent, as significant unknowns underlined by the bank in the past continue to swirl around the U.S. agenda on trade and taxation.

"The uncertainties outlined in April (monetary policy report) continue to cloud the global and Canadian outlooks,'' said the bank, without making any specific mentions this time about the potential policy path of Canada's largest trading partner.

With no monetary policy report released Wednesday, observers will scrutinize the commentary in the bank's one-page statement for clues about its thinking on the trajectory of the economy.

The bank's statement also said while recent government policy measures on real estate have contributed to more sustainable outlooks for household debt, the rules have yet to have a substantial cooling effect on hot housing markets.

On core inflation, the bank noted that recent readings for its three measures, which reduce the influence of some more volatile consumer items like gasoline, have stayed below its ideal target of two per cent. That signals the entire economy has yet to catch up to the recent momentum.

The Canadian Press 

 

Visit us at Durham Bungalows.ca for all your Real Estate needs!

 

source: http://www.canadianrealestatemagazine.ca/business-news/bank-of-canada-makes-interest-rate-announcement-225901.aspx

 


Tagged with: bank of canada interest rates
| | Share

Boost your Credit Score regardless of age.

Originally posted on: April 26, 2018
Filed under: credit credit score
Credit scores are important. Many people are taking more time to review their scores and finding ways to improve them, especially younger consum ...

Green Ontario Fund Energy Rebates

Originally posted on: April 10, 2018
Last updated on: April 10, 2018
Filed under: green on greenon energy
If you have not heard of this, it is a Government Program to entice us to have a smaller carbon footprint and reduce energy costs. There are dif ...

History of Easter

Originally posted on: March 29, 2018
Last updated on: March 29, 2018
Filed under: easter history
Happy Easter Weekend! The Ancient Pagan Origins of Easter ...

How to protect your information.

Originally posted on: March 2, 2018
Last updated on: March 2, 2018
Filed under: online password protection
Many of us spend a lot of time online. We shop, use social media to connect with family and friends, send personal and business emails, pay bill ...

History of Valentine's Day

Originally posted on: February 14, 2018
Last updated on: February 14, 2018
Filed under: history valentine valentines
Happy Valentine's Day Everyone, If you have ever wondered how Valentine's Day start here is an article that goes over it. Plea ...
Sales Representative


Durham Bungalows
Brokerage
Independently owned and operated.

420 Green Street #105
Whitby, ON L1N 8R1


Phone: 1-289-274-2273
Powered by Lone Wolf Real Estate Technologies (CMS6)