Canadian economy resilient despite global uncertainty

Canadian economy resilient despite global uncertainty

The Bank of Canada kept its key interest rate on hold Wednesday, noting that while global recession concerns are waning, trade conflicts and related uncertainty continue to remain a key risk.

Stephen Poloz, governor of the central bank, made the announcement Wednesday morning, leaving the rate unchanged for the ninth meeting in a row.

The central bank is expected by economists to keep its key interest rate target steady at 1.75 per cent, where it has been set since October of a year ago.

In a speech to the Ottawa Board of Trade, deputy governor Timothy Lane said inflation in Canada remains on target and a strong job market points to sources of growth.

Variable-rate mortgages, which are tied to the Bank of Canada's overnight rate, stay where they are.

"Anyone with a variable rate will be disappointed that Canada is not following other central banks who have consistently been reducing their rates", James Laird, co-founder of Ratehub, told Yahoo Finance Canada.

The Bank of Canada laid out a staunch defense of its decision to buck the global easing trend, citing a resilience in the nation's economy that is allowing it to "chart its own course in monetary policy".

The Bank of Canada held steady in its last meeting, too, the same day that the US Federal reserve chose to cut rates by 25 basis points.

Google introduces new digital wellbeing feature - Focus Mode
With the latest update to the Digital Wellbeing app on Android, you can experience it in your Android smartphone. So, if you could use a little help when it comes to putting your phone down, Focus mode might be worth a look.

"Many people wonder why we have held our key policy rate steady over the past year while many other central banks have lowered their rates", Lane asked. "Moreover, data have been revised upward, revealing that investment earlier this year was higher than previously reported", Lane said.

"There is no reason for the Bank of Canada to move in step with the Fed". The central bank said in its latest quarterly report on the economy that it thought the gap in the third quarter was between zero and minus one, or essentially closed.

The statement noted that the economic growth of Canada decelerated in the third quarter, but the remainder of its characterization noted underlying strength, especially in housing investment and "unexpectedly" in business investment spending.

Inflation remains at the bank's 2% target and is expected to track close to that figure for the next two years.

To be sure, the flicker of hope that the global economy has taken a turn for the better could prove ephemeral.

Stock markets tumbled from record highs as Trump opened new fronts in his trade wars, and then recovered somewhat on December 4 after Bloomberg News reported that the USA and China were close to an agreement that would reduce some tariffs.

Policymakers said they continue to "monitor the evolution of financial vulnerabilities related to the household sector", which is how the Bank of Canada expresses its concern about elevated levels of household debt.

Sal Guatieri, senior economist with BMO Capital Markets, said the bank appeared to be taking comfort from the rebound in business investment and steady growth in consumer spending. The U.S. Federal Reserve has cut its rate three times this year.

Related News:



Most liked

Leonardo DiCaprio's girlfriend Camilly Morrone defends 23-year age gap
Camila appeared relaxed and happy as she posed at the event, despite having to defend her romance in a new interview this week. Leonardo DiCaprio has always been in the spotlight for his relationships. "It's definitely not a casual relationship".

Global CO2 Emissions To Reach Record High In 2019, Despite Slowing Down
The climate outlook is "bleak" and the planet's pathway back to a safe climate is narrowing, the United Nations warned last week. The most polluting fossil fuel saw its usage drop by as much as 10 percent in the two regions this year, the report said.

USA charges Russian 'Evil Corp' hackers behind Dridex banking malware
The group "had a level of sophistication and scope of threat that we rarely see", said Pittsburgh-based US Attorney Scott Brady. Investigators were aware of Yakubets, 32, already in 2009, after they traced him from his online nickname "aqua".

LeBron James Responds To Announcers Who Felt He "Disrespected" The Utah Jazz
Never afraid to respond to criticism, James clapped back against said announcers on Instagram Thursday morning. He also said he feels bad for whoever missed the traveling call, because they're going to hear about it.

Here Are The Best Games And Apps of 2019 According to Apple
This game is described by Apple as a "hopeful, gorgeous and unique game", that gets adrenaline pumping and makes spirits soar. Apple Arcade Game of the Year: "Sayonara Wild Hearts " (Simogo) - A game involving racing motorcycles and sword fighting.

North Korea threatens to resume calling Trump ‘dotard’
Kim and Trump have met three times, starting with a summit in Singapore last June. He added that "That's why I call him a rocket man".

Doctors successfully brought a dead heart back to life
Many tissue donations are possible from non-beating heart donors such as corneas, heart valves, skin, and bone. The method was first used in the UK's leading hospital for heart and lung Royal Papworth Hospital in 2015.

Kate Middleton looks perfectly festive during Christmas tree farm visit
The visit ended with Kate and the children returning inside for some well-earned hot chocolate. The Queen passed this role over to her, having held it herself for 65 years.

RBI Keeps Rates on Hold Despite Economy Fears
The central bank raised its inflation forecast for the second-half of the fiscal year to 4.7%-5.1% from 3.5%-3.7% seen previously. In its February policy, the RBI had forecast GDP growth at 7.4 per cent, wh-ich was revised down to 7.2 per cent in April.

Body of third missing Alice Springs traveller found by police
The trio initially survived on six litres of bottled water, ten tins of iced vodka, beef noodles and biscuits. Mr Tran had last seen Ms Hockridge two days earlier following a fence line, Mr Fogarty said.

Trump lawyer meets Ukraine MP who called for Biden probe
Zelensky in the negotiations, as stressed by numerous security professionals who testified in the recent impeachment hearings, Mr. Giuliani were sworn in on camera to "testify under oath" in a manner that the network claims "debunks the impeachment hoax".

Princess Anne Made A Political Statement By Not Greeting Donald, Melania Trump?
More than a decade later, Anne became the first member of her family to appear as a contestant on a television quiz-show. Low explained that Queen Elizabeth turned to Anne to see which world leader was next to be greeted.

Make significant offer to Zack Wheeler but still miss
Sports Philadelphia's Jim Salisbury reports that Wheeler's deal is worth just under $120 million over five seasons. I thought the addition of Zack Wheeler to the White Sox would have been a nice next step in the rebuild process.

Warner backs this Indian batsman to break Lara's Test record
However, during his fascinating innings, he shattered several records before Tim Paine declared at a score of 589 runs. Australia clean sweep the two-match Test series by thrashing the tourists by an innings and 48 runs in Adelaide .

China attacks United States
But a Chinese government spokesperson suggested that the bill could jeopardize any agreement. "We can not be silent". The Uygur Intervention and Global Humanitarian Unified Response Act (UIGHUR Act) of 2019 now goes to U.S.