Canadian economy resilient despite global uncertainty

Embedded Image

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.

Smartphones Could Soon Allow You To Scan Two Fingerprints Simultaneously
Indeed, Samsung used the company's first-generation ultrasonic print scanners in its Galaxy S10 and Note 10 + handsets. He stated "we're very happy with the progress we're making, and I expect that they're going to have a great device".

"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:

  • North Korea threatens to resume calling Trump ‘dotard’

    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".
    Body of third missing Alice Springs traveller found by police

    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.

    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.
  • Global CO2 Emissions To Reach Record High In 2019, Despite Slowing Down

    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.
    Spotify Wrapped: Find Out Your Top Artists + Songs for 2019

    Spotify Wrapped: Find Out Your Top Artists + Songs for 2019

    This year, Spotify have also launched another feature on the end of year round up that tells you all about your decade in music. It's also now highlighting how global users' listening habits are, by showing your top artists on a world map.
    Warner backs this Indian batsman to break Lara's Test record

    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 .
  • Leonardo DiCaprio's girlfriend Camilly Morrone defends 23-year age gap

    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".
    Ford to use McDonald’s coffee waste to make headlights and other parts

    Ford to use McDonald’s coffee waste to make headlights and other parts

    McDonald's aims to do its part by designating a " significant portion " of its North American coffee chaff for Ford manufacturing. When heated and mixed with plastic and other additives, coffee chaff can be formed into pellets and then various other shapes.
    RBI Keeps Rates on Hold Despite Economy Fears

    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.
  • India vs West Indies

    India vs West Indies

    Rahul and wicketkeeper-batsman Rishabh Pant , who would view this series as another precious chance to impress the powers that be. However, King only managed 17 runs in three T20 innings against the Afghans, proving it's not an easy transition.
    A new innovative feature may be coming to the MacBook Pro

    A new innovative feature may be coming to the MacBook Pro

    Kuo reports that the company will introduce at least two products with mini-LED displays in 2020. In somewhat of a odd move from Apple, iPad Pro didn't get a hardware update at all this year.
    Tiger Woods again declines hefty appearance fee to play in Saudi event

    Tiger Woods again declines hefty appearance fee to play in Saudi event

    It is historically not a golf hotbed within the Center East, nevertheless it has grown fairly a bit". And also a lot of top players are going to be playing there that particular week.


Most liked

Billionaire Lawrence Stroll reportedly seeks major stake in Aston Martin
The consortium has invested heavily in the team and plans to expand the factory, located near the Silverstone Circuit, next year. Its major shareholder is Strategic European Investment Group from Italy, which holds about a third of the company.

Trump Campaign Manager Accuses Hillary Clinton of Lying About Trump Phone Call
She called Trump's speech "bizarre" and said, "That's when I got really anxious ... Clinton then alleged that Trump "was so shocked... he could barely talk".

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".

PH to pursue climate justice in COP25 talks
He said the conference will offer people an opportunity to do so. Today we release an update that strengthens these principles. The 25 stands for 25th annual meeting.

Xiaomi’s Redmi K30 will charge a 4500mAh battery in one hour
Also, the launching date for the Redmi K30 5G is said to be on 10 December by Redmi General Manager, Lu Weibing on his Weibo . Canalys has also included Xiaomi in the top five rankings in over 40 countries and regions in terms of smartphone shipments.

Liverpool have its best start to Premier League history
Aiming to extend their lead, Liverpool next face Bournemouth at the Vitality Stadium on Saturday afternoon in the Premier League. It has been a poor season for Everton and the team has too many issues at the moment.

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.

US President Donald Trump says UK PM Boris Johnson 'very capable'
Trump is a divisive figure for some in Britain, and senior Conservatives are nervous his involvement could upset their campaign. Trump took aim at Macron with NATO Secretary General Jens Stoltenberg by his side and called his comments "very nasty".

Emma Stone Just Got Engaged To Her 'SNL' Director Boyfriend Dave McCary
Emma recently opened up about wanting to get married and have kids, but admitted she didn't always want to. Emma also showed her support for Dave at the premiere of his film Brigsby Bear in 2017.

Johnson backs tech tax despite Trump's threats
Mr Trump said : "We have a minor dispute". "If anyone is going to take advantage of the American companies, it's going to be us". But Washington says that U.S. companies have been singled out.

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.

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.

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.

Mass Shooting, Multiple Victims Reported at Hawaii’s Pearl Harbor Naval Base
The base has been placed in lockdown and a PA system is urging people to take cover, Hawaii News Now reports. Witnesses told the news outlet they saw the alleged gunman fatally shoot himself.