Canada's response the exception among advanced economies

By The Canadian Press

Central bank leaves key rate unchanged

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

Oct 30, 2019 | 8:21 AM

OTTAWA – 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.

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.

IN THE COMMUNITY

'Compassionate Friends' offer peer support for bereaved in Medicine Hat

11h ago

POSTAL STRIKE

Donations to Medicine Hat non-profits drop over Canada Post strike

12h ago

IN THE COMMUNITY

Medicine Hat's Adopt-A-Rink program still seeking volunteers

20h ago

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)