Bank of Canada Holds Interest Rates at 1.25 Percent

Bank of Canada to announce interest rate today

The Bank of Canada announced Wednesday that it will keep its interest rate unchanged at 1.25 percent due to weakness in housing, trade and investment in export-oriented sectors.

But the first quarter of 2018 was weaker than the bank expected due to exports lagging and housing market activity being pulled into late 2017 to get ahead of tighter mortgage regulations that came into effect in 2018.

The BoC expects Canada's GDP, which was 1.3% annualized in Q1, to rebound in the second quarter, resulting in a 2% average growth in the first half of 2018.

On inflation, the bank said temporary downward forces weighing on the rate have largely dissipated.

Scotiabank Capital Markets economist Derek Holt says the Bank of Canada is facing "a conundrum of sorts", in that economic growth has been disappointing as the NAFTA talks progressed, yet wage and price pressures are building. Still, capacity constraints have been limiting export growth.

Detroit Tigers 'Pink Out the Park' on Mother's Day
Machado had four RBIs for the Orioles, who were outhit 18-14 in the game and outscored 23-15 in the three-game sweep. However, things are projected to clear up when the struggling Baltimore Orioles come to town for a three game set.

Business investment has emerged as the single biggest uncertainty looming over the Bank of Canada's path to higher interest rates. If we saw some clarity in the next few months on NAFTA, and/or some policy response from the Canadian government to the USA tax cuts, it would open the door for businesses to accelerate their spending on new capacity.

That means that even with the stronger growth outlook, the economy has more room to grow without generating inflationary pressures. It sees growth of 2 per cent this year and 2.1 per cent in 2019, a significant revision from a previous estimate of 1.6 per cent.

Canadian domestic consumption remains robust, supported by strong labor income growth.

The Canadian economy is operating at close to capacity.

The bank will continue to assess labour market data for signs of remaining slack.

India contributing to global growth in financial inclusion
A sizable 36% of account owners in India are already using their accounts to make or receive digital payments, the report says. Another new feature of the 2017 Global Findex is updated data on the link between financial inclusion and the world of work.

It now forecasts potential output to grow by 1.8 percent in 2018 and 2019, before accelerating to 1.9 percent in 2020.

The main reason the output gap widened, the Bank of Canada said, was because businesses have been investing more than previously believed in expanding their capacity. That growth is expected to ease from about 3.75% in 2018 to about 3.5% in 2020.

The report also gave an update to the important economic risks as seen by the central bank.

Poloz is trying to fine-tune a return of interest rates back to more normal levels, hoping to raise them just enough to prevent inflation from creeping up, and not so quick as to trigger an unwanted slowdown.

Importantly, Mr. Poloz took pains to remind everyone that the Bank of Canada's 2-per-cent inflation target is the mid-point of the bank's target band of 1 per cent to 3 per cent - and that inflation had resided below that mid-point for a very long time. "The statement accompanying the decision may have had a hint of hawkishness to it, but the details of the Monetary Policy Report were decidedly dovish", noted TD Economics in a research report.

Taylor Swift Sheds Light On Broken Relationship in Sugarland's "Babe"
And of course, an artist with millions of album sales will have a few sold out tours. The album itself is wonderful , so we never doubted that " Babe " wouldn't be.

Related News:

  • Justice Department investigating collusion among USA  wireless carriers

    Justice Department investigating collusion among USA wireless carriers

    Observers of the trial say AT&T appears to have an advantage after exposing weaknesses in the government's pricing power claims. A technology that made it easy to switch carriers could lead to more turnover and fewer subscribers for them.
    Man United v Tottenham: Key battles

    Man United v Tottenham: Key battles

    Tottenham take on United at a ground they have played at all season , but which this weekend is classed as a neutral venue. Spurs are favourites in the eyes of bookmakers, and they are available at their best odds of 13/10 at Bet365.
    Spurs play with heavy hearts, lose to Warriors

    Spurs play with heavy hearts, lose to Warriors

    The Warriors have won their first three games against the Spurs in Round 1 of the playoffs. Kevin Durant told reporters he was "fine" after rolling his ankle in Game 3 on Thursday.
  • France says proof likely disappearing from Douma, inspectors must have full access

    France says proof likely disappearing from Douma, inspectors must have full access

    A diplomatic source told Reuters that evidence may have been removed while inspectors negotiated access with Syrian authorities. The President stated that the U.S.is prepared to continue using this action toward Syria's chemical torture.
    Southwest Airlines protested airworthiness directive created to  prevent engine failures

    Southwest Airlines protested airworthiness directive created to prevent engine failures

    The costs will likely be shared by Southwest; the engine's maker, CFM International; and the plane's manufacturer, Boeing . The Times says American Airlines has about 300 planes with the same type of engines and Delta Air Lines has about 185.

    Valero Energy Partners LP (NYSE:VLP) Institutional Investors 2017 Q4 Sentiment

    The stock of Valero Energy Partners LP ( NYSE : VLP ) earned "Buy" rating by RBC Capital Markets on Monday, October 30. Its up 0.10, from 1 in 2017Q3. 51 investors sold all, 327 reduced holdings as Valero Energy Corporation ratio dropped.
  • Windrush scandal: Home Office probing more than 100 cases

    Windrush scandal: Home Office probing more than 100 cases

    The Home Affairs Committee has called the current Home Secretary , Amber Rudd , to give evidence next week. There are even fears some may have been deported in error.

    Cigna Investments Inc. New Decreases Position in Chevron Co. (NYSE:CVX)

    Several analysts have released their opinion on Chevron Corporation ( NYSE : CVX ), with 13 analysts believing it is a strong buy. The institutional investor owned 12,045 shares of the oil and gas company's stock after selling 1,145 shares during the quarter.
    Capitals F Burakovsky out rest of series vs. Blue Jackets

    Capitals F Burakovsky out rest of series vs. Blue Jackets

    The Blue Jackets are a team that will play many low scoring games at home, but on the road, it is a different story. Columbus has gone 21-22 on the road and they have averaged 3.07 gpg and have allowed 3.16 gpg in those games.
  • Regulators To Require Inspections After Jet Engine Explosion

    Regulators To Require Inspections After Jet Engine Explosion

    Southwest Flight 1380 from NY to Dallas suffered an engine failure Monday and made an emergency landing in Philadelphia . Steven Levin, a founder and senior partner at the Chicago-based firm Levin & Perconti, says they're also strategic.
    With spurt of toxic goo, 'exploding ants' sacrifice themselves to protect colony

    With spurt of toxic goo, 'exploding ants' sacrifice themselves to protect colony

    Zoologists have always been intrigued by such exploding ants first documented in Southeast Asian forests in 1916. Scientists have discovered a new species of ant that boasts a remarkable defence mechanism.
    Patriots' 2018 schedule still a prime-time attraction

    Patriots' 2018 schedule still a prime-time attraction

    IT'S FINALLY HERE! The NFL Schedule has officially been released for all the rabid NFL fans looking forward to next season. Tottenham Hotspur's new stadium, also in London, will be the site for a Raiders home game on October 14 against Seattle.


Most liked

Kathua rape and murder: Hundreds march in Muzaffarabad
He added that there may have been pressure from her coalition partner (the BJP), given that two BJP MLAs were openly supporting the accused.

Marijuana use decreases cognitive functions in teenagers
Taking a little break from marijuana after 4/20 will definitely be a good look for your brain's intellectual skills. The federal government could legalize marijuana in the next five years , said the former MA governor Bill Weld.

North Korea suspends missile tests
In the same address, he said he had a nuclear button on his desk, prompting Trump to tweet that he had a bigger one of his own. It is understood the decision was made at a meeting of the ruling Worker's Party of Korea's central committee on Friday.

India seeks to join China in dispute over USA tariff hikes
On Thursday, Reuters reported that Russian Federation turned to the WTO demanding compensation from the USA for tariffs on steel and aluminum.

Parents of terminally-ill British toddler lose court appeal
The Supreme Court has announced that they will not give the family permission to appeal, according to the Liverpool Echo. In February 2018, Alder Hey won a legal decision that continued life support was not in the child's best interests.

Engine manufacturer, FAA call for immediate inspections after Southwest Airlines fatality
The manufacturer told CNN it has been working with the FAA on the inspection procedures. Riordan, who was in a window seat in Row 14, was wearing a seat belt.

The End of an Era: Queen Elizabeth Names Her Successor
Some have suggested that Charles should not take over the helm of the group, which takes in 2.4 billion people on five continents. She also said she was mindful the Commonwealth draws its mandate from the countries and its leaders.

Apple users don't want macOS and iOS merged, Tim Cook says
The process is extremely complicated, which may explain why macOS apps lag behind iOS apps when it comes to updates. Google is also unifying its platform by rolling out Google Play store for laptops running on its Chrome OS.

Probe into Prince's opioid death brings no criminal charges
Prince , 57, was found dead at his Paisley Park home and recording studio complex near Minneapolis on April 21, 2016. ABC News reports that the icon died after accidentally overdosing on counterfeit painkillers.

PA Sells 3022 Shares of The Walt Disney Company (DIS)
Bailard Inc who had been investing in Apple Inc for a number of months, seems to be bullish on the $903.07B market cap company. Dorsey And Whitney Communication Limited Liability owns 1.61% invested in The Walt Disney Company (NYSE: DIS ) for 81,147 shs.

Have a gripe on these Current stocks: Caesars Entertainment Corporation (NASDAQ:CZR)
In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. It increased, as 59 investors sold EFX shares while 154 reduced holdings. 113 funds opened positions while 262 raised stakes.

OnePlus 6's pricing, Specification, Features and launch date in India revealed
On the other hand, current leaks and rumors about the smartphone OnePlus 6 also have been circulating since earlier some months. In case OnePlus does bring the 256GB storage variant to our shores, we can expect it to be priced around Rs.45,000 at launch.

Profitability Ratios Evaluation: United Continental Holdings, Inc. (UAL)

Bucks 'Frustrated With Jabari Parker's Immaturity'
I have a right to be frustrated", Parker told Stephen Watson of Wisconsin's WISN News 12's on Thursday. He averaged 12.6 points per game after missing almost a year rehabbing his second major knee injury.

Fortnite Battle Royale 50v50 mode on now
Yes, Tilted Towers is still there, so all of those expecting it to be destroyed with this patch were sadly mistaken. The LMG is a rapid firing 100-round-per-clip beast that is seemingly a mix between an assault rifle and a minigun.