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

Police watchdog investigating death of man in Delta

Independent Investigations Office asking for witnesses to May 29 incident at Tsawwassen ferry terminal

Surrey Food Bank’s ‘huge’ move to Newton begins this month

‘We’re going to have space to do the things that we haven’t had a chance to do before’

Transportation Safety Board investigating fatality at Thornton Yard in Surrey

A CN spokesman said fatal ‘incident’ involved a CN employee

COVID-19: Daily update on pandemic in Surrey, White Rock and beyond

June 1: B.C. schools are back in session – but how many students will show up?

Suspect sought in alleged assault, hate crime on Metro Vancouver bus: transit police

The woman then allegedly punched the teenager in the head multiple times

COVID-19: B.C. commercial landlords can’t evict if they decline rent assistance

Emergency order ‘incentive’ for federal program, Carole James says

Abbotsford International Airshow opening 50-year-old time capsule

Bronze time capsule was put together to commemorate AIA as Canada’s National Airshow

Facing changes together: Your community, your journalists

Importance of accurate, ethical reporting more critical than ever

Trans Mountain starts B.C. leg of pipeline twinning project

Mostly finished in Alberta, Burnaby terminal expanding

NDP getting COVID-19 wage subsidy ‘indirectly,’ B.C. Liberal leader says

Andrew Wilkinson says he’s heard no concerns from public

Most Read