Central bank holds rate, notes ‘increased uncertainty’ on timing of future hikes

Bank of Canada holds rate steady, notes 'increased uncertainty' about future hikes

The bank says it had been expecting a drop in household spending as well as weak numbers for exports and investment in oil-producing provinces over the final three months of 2018.

However, the country's slowing economy has led to building uncertainty about the timing of future rate hikes, a stark change from the Bank of Canada's statement in January that rates were expected to rise to an estimated range of between 2.5 and 3.5%.

The Canadian economy lost significant momentum in the latter half of 2018, in part due to oil sector curtailments, but the weakness made itself evident in almost all components, such that final domestic demand contracted for a second quarter.

It also warned the first half of 2019 - and not just the first quarter as it had predicted in January - appeared to be on track for additional economic disappointment.

It's a mixed picture, and we need more time and more data to better understand what's going on.

Bank of Canada governor Stephen Poloz is next scheduled to meet with other members of the bank's governing council and reveal their decision on where to set the bank's interest rate on April 24, 2019. Further, the greater uncertainty and data dependence highlighted by the Bank of Canada could provide a tailwind for the Dollars moving forward as the language is priced in to the market's expectation of future rate hikes.

However, the BoC gave no hint at a potential rate cut even as talk of an economic recession mounted after dismal fourth quarter of 2018 economic growth of 0.4 percent.

Jordyn Woods Bares New Look In Fresh Start After Khloe Kardashian Tangle
Kylie Jenner and her (former) bestie Jordyn Woods may not be on good terms at the moment, but there's still hope for a possible reconciliation between the two.

Indeed, the central bank's neutral rate range has become contentious, with bond investors warning that it may be too high for Canada's debt-laden economy, hurting its use as a signpost for monetary policy.

But last week's data showed a much deeper slowdown than anyone anticipated, casting doubt on the underlying strength of the expansion. But the job market is still strong and wages are rising.

The loonie fell 0.7 per cent to $1.3439 per USA dollar, touching the weakest since January 4 and paring its 2019 advance to 1.5 per cent. Yields on two-year Canadian government bonds dropped 8 basis points to 1.66 per cent, the lowest since December. TD securities notes the latter has seen double-digit annualized declines in two straight quarters.

Economists agree there is little justification for a rate hike for most of 2019. Trade tensions and uncertainty continue to dampen these components of growth.

"It is clear that global economic prospects would be buoyed by the resolution of trade conflicts", said the bank.

It acknowledges progress in ongoing U.S.

On the inflation front, the Bank appears to have slightly downgraded its forecast, now expecting inflation to stay below its 2% target this year reflecting energy price impacts and a softer economic backdrop.

Related News:

  • Samsung's Galaxy S10 lineup can be purchased through the Microsoft Store

    Samsung's Galaxy S10 lineup can be purchased through the Microsoft Store

    The two companies started working together in August, and Spotify was deemed Samsung's go-to music provider . What's more, Samsung buyers will be able to enjoy six free months of Spotify Premium right out of the gate.
    Venezuelan vice president says power outage was caused by cyber attack

    Venezuelan vice president says power outage was caused by cyber attack

    High-ranking officials have been accused in USA court proceedings of looting government money earmarked for the electrical system. The Venezuelan capital Caracas was in near-darkness on March 8, 2019 during the worst power outage in the country's history.
    Liverpool title win will not heal Gerrard's 'wound'

    Liverpool title win will not heal Gerrard's 'wound'

    That's how it is. "Mo has an unbelievable scoring record and that is a part of why we are in the position we're in now". He missed a couple of chances against Everton he would probably have taken last season but Klopp is unconcerned.
  • R. Kelly freed from jail after someone paid $161,000

    R. Kelly freed from jail after someone paid $161,000

    Kelly's publicist, spoke with Rose-Ann Aragon about the sexual abuse allegations leveraged against the rhythm and blues singer . Kelly as he left, with one woman even asking him to touch her hand and others shouting that he is still the "King of R&B".
    Cabrera Bello sets pace with 65 at Bay Hill

    Cabrera Bello sets pace with 65 at Bay Hill

    To win an event that has the name of one of the greatest players on earth would be really special, but it's only Thursday". The new rule for a stroke-and-distance penalty allowed him to move it one club length away.
    Nirav Modi spotted in London, avoids questions by journalist

    Nirav Modi spotted in London, avoids questions by journalist

    The 48-year-old bank fraud fugitive who faces an Interpol red corner notice is now subject of an extradition request by India. Nirav and his uncle Mehul Choksi fled India and has not returned despite repeated summons from probe agencies and courts.
  • Jennifer Lopez and Alex Rodriguez announce engagement

    Jennifer Lopez and Alex Rodriguez announce engagement

    There's no word on a wedding date, but Lopez has a U.S. tour scheduled to start June 7 and go until July 26. Rodriguez wrote in the post, "She said yes", alongside a photo of Lopez's hand with a massive diamond ring.
    Angels Contact MLB Over Potential Mike Trout Tampering After Bryce Harper Comments

    Angels Contact MLB Over Potential Mike Trout Tampering After Bryce Harper Comments

    Harper homered Wednesday in his first scrimmage with the Phillies and said his comments about Trout represented his intentions. Trout, a two-time AL MVP with the Angels, grew up near Philadelphia and has season tickets for the Eagles .
    Giants send linebacker Olivier Vernon to Browns

    Giants send linebacker Olivier Vernon to Browns

    However, the Browns not too long ago reportedly tried to pry Giants star wide receiver Odell Beckham Jr . out of NY . There is depth at that position in this year's class, and Cleveland could land one with the No. 17 overall pick.
  • Andrew Bogut rejoining Warriors, adds depth at centre

    Andrew Bogut rejoining Warriors, adds depth at centre

    On Tuesday, reporters asked Steph Curry at the team's shootaround about the possibility of Bogut rejoining the team. I thought I closed that door after signing with the Sydney Kings , ' Bogut said.
    MSF warns of DRC Ebola response losing upper hand

    MSF warns of DRC Ebola response losing upper hand

    The medical aid group has temporarily suspended its operations at two of its centres after attackers set fire to them. At least 569 people have died among the 907 confirmed and probable cases, according to the World Health Organisation.
    Google Bolo Reading-Tutor App Launched in India, Now Available for Android

    Google Bolo Reading-Tutor App Launched in India, Now Available for Android

    Google has banded together with Storyweaver .org.in for substance, which incorporates 50 stories in Hindi and 40 in English . " Bolo is designed as a reading-tutor app that helps primary grade students to improve their reading - anytime, anywhere ".


Most liked

China optimistic negotiators will agree on mutually beneficial deal with US
It is unclear when or where senior negotiators from both sides will next meet. "We've got to be realistic that this is a one-party authoritarian system".

Advantage Rennes after defeat of Arsenal
Paul Pogba is back from suspension, while Anthony Martial , Nemanja Matic and Ander Herrera could be fit to return from injury. We haven't won the league title since 2013 so they're not going to have the same feeling which the team I played in had.

Akash Ambani-Shloka Mehta wedding ceremony
Almost the entire Bollywood fraternity, sportsman and politicians are expected to attend the high profile wedding. Akash and Sholka got engaged in June 2018 and celebrated the occasion with a string of lavish parties in Mumbai .

Apple might launch an AR headset next year
Back in 2017, Bloomberg wrote that Apple was set to ship an augmented reality headset next year, which aligns with Kuo's report . He says that the glasses will only act as a display or a projector and the real computation will take place on the iPhone.

Motorola foldable RAZR leak suggests an unexpected twist
When in the camera app, the user can tap on the primary display to capture a photo, or swipe up on the primary display to zoom in. Meanwhile, the external display will work as a trackpad for scrolling apps and lists on the primary display when that's unfolded.

United Kingdom womenswear chain LK Bennett falls into administration — International Business
The fashion retailer, known for its smart daywear, attracted celebrity fans over its near 30-year history, including the Duches. With the rise of competition from online retailer offering cheap easy alternatives it's hard for high street brand to survive.

Kelly Pays Child Support, Is Finally Released From Jail
Kelly , wearing a gray sweatshirt under a red coat, left jail just before noon local time, accompanied by Greenberg. Last month Avenatti said he had uncovered videotape of Kelly having sex with a 14-year-old girl multiple times.

US Nationals Will Need Visa to Enter EU States Starting 2021
The program will require USA passport holders to obtain a visa in advance before taking their summer Eurotrip. One ETIAS grants access to all 26 nations for up to 90 days of travel, according to officials.

National Audit Office report on the Apprenticeship Programme
Public spending on the apprenticeships programme increased from £1.2bn in 2010-11 to £1.6bn in 2017-18. The proceeds then go towards paying for more people to start apprenticeships at those companies.

No militants will be allowed to attack from Pakistani soil: Imran Khan
Pakistan also detained the MiG-21 pilot Wing Commander Abhinandan Varthaman, who was handed over to India on Friday. Pakistan also plans to lodge a complaint against India at the United Nation (UN), accusing India of Eco Terrorism .

French guards blockade prisons after ‘radicalized’ inmate stabbed 2 officers (VIDEO, PHOTOS)
He had asked fellow inmates to "re-enact" the 2015 terror attack on the Bataclan music venue in Paris , which left 90 people dead. Guards at as many as 18 French prisons blocked the entries in protest after a radicalized inmate stabbed two of their colleagues.

Robbie Henshaw and Dan Leavy out of France clash
The array of attacking weapons around the hulking centre will ask questions of Ireland's concentrations. Their first win of the campaign should inject confidence where previously there had been none.

Michael Cohen gives Congress versions of 2017 testimony on Moscow project
Cohen testified that the president "knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it". And the Washington Post's fact checkers have counted almost 9,000 false or misleading Trump statements just since he took office.

Whoopi Goldberg says she nearly died from pneumonia
Sepsis is a risky response to an infection by the body's immune system, which can damage organs and sharply lower blood pressure. Before Goldberg resurfaced, some fans were actually convinced she was preparing to host the Academy Awards in secret.

Steph Curry, Under Armour unveil sneakers designed by 9-year-old girl
Curry told CBS This Morning that his journey with Riley has gone full circle. Morrison also hopes a lesson is learned from her experience.