(Pete Evans – CBC News)
Canada’s central bank has decided to keep its benchmark interest rate at 1.75 per cent, and says the timing of possible future hikes has become increasingly uncertain.
The Bank of Canada says the economic slowdown that began at the end of last year is a bit worse than it was expecting, including a sharper-than-anticipated slowdown in Canada’s oil patch. The bank also singled out softness in the housing market and consumer spending as reasons for a gloomier outlook.
“It is clear that global economic prospects would be buoyed by the resolution of trade conflicts,” the bank said. “With increased uncertainty about the timing of future rate increases, [the bank] will be watching closely developments in household spending, oil markets, and global trade policy.” Click here to read more.
- Bank of Canada Press Release
- Video: A Progress Report on the Economy (Bank of Canada)
- Bank of Canada Sees Longer, Deeper Economic Slump, Casts Doubts on Future Rate Hikes (Globe & Mail)
- Yields are Signaling That the Bank of Canada Could Take Rate Hikes Right Off the Table (Financial Post)
- Statistics Canada Says Trade Deficit Hit Record $4.6 Billion in December (Canadian Press)