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

Governor Stephen Poloz’s team is warning that the resilience of Canada’s economy will be increasingly tested

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

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.

ALSO READ: Bank of Canada holds interest rate as it takes stock of trade war impacts

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.

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

Like us on Facebook and follow us on Twitter.

Just Posted

San Group owners Suki, left, and Kamal Sanghera with technical manager Richard Zeller at their facility in Port Alberni in Feb. 2021. The forestry company is looking at expanding its business into northwest B.C. by setting up a manufacturing unit in Terrace. (SUSAN QUINN/ Black Press file photo)
Forestry company San Group eyes Terrace for northwest B.C expansion

The company looks at Skeena Industrial Park to set up a sawmill manufacturing unit

This photo of the Rack and Rally squash club was taken in June 2021. (ELENA RARDON / ALBERNI VALLEY NEWS)
Improvements planned for Third Avenue squash club

City council concerned about how long construction is taking

EJ Dunn principal Darrin Olson, left, and Nuu-chah-nulth Tribal Councils Richard Samuel, right, present Trey Kyte, second from left, with his Grades 2-3 Spring Festival 2021 winning poster. With them are Kytes fellow banner painters Liam Horbatch, Sybil Purwins and Macen Avery. (SUSAN QUINN/ Alberni Valley News)
SD70’s biennial First Nations spring festival goes virtual for 2021

Alberni Valley schools showcase Indigenous learnings from past year

Port Alberni court house (Alberni Valley News)
Coroners’ inquest into 2016 death of Port Alberni teen rescheduled for June 21

18-year-old Jocelyn George died of heart failure after spending time in jail cell

The border crossing on Highway 11 in Abbotsford heading south (file)
VIDEO: Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The Tsow-Tun Le Lum Society, which has been operating a treatment centre on land leased from the Nanoose First Nation for 35 years (pictured), has begun a fundraising campaign to open a new centre near Duncan. (Tsow-Tun Le Lum Society photo)
New residential school healing centre to be built near Duncan

$5-million Indigenous treatment centre will help survivors of residential schools heal

Two Lotto Max tickets sold on Vancouver Island were winners, though nobody won the $70-million jackpot in Tuesday’s draw. (BCLC image)
Vancouver Island lottery players win $1 million and $500,000 in Lotto Max draw

$1 million ticket sold in Campbell River, $500,000 ticket sold in Nanaimo

St. Joseph's Mission site is located about six kilometres from Williams Lake First Nation. (Photo submitted)
Williams Lake First Nation to search residential school site for unmarked graves

St. Joseph’s Mission Indian Residential School operated from 1886 to 1981

Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Lotto Max jackpot goes unclaimed again

42 of the 64 Maxmillion prizes of $1 million were won, the majority were sold in Ontario

FILE - This July 6, 2017 file photo shows prescription drugs in a glass flask at the state crime lab in Taylorsville, Utah. (AP Photo/Rick Bowmer, File)
Contaminants in generic drugs may cause long-term harm to DNA: B.C. researcher

Scientist says findings suggest high volume overseas facilities require strict regulation

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., on April 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Labour shortages, closed borders major obstacles to B.C. restaurant, tourism restarts

Industry expert says it won’t start to recover until international travellers can visit

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read