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

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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

“Isolation is normal for us,” says Saanich dad with cystic fibrosis

Gordon Head man says now’s the time to approve life-saving cystic fibrosis drug

Victoria business still busy as people turn to books while in self-isolation

Russell Books says certain genres have gained popularity during COVID-19

Farmers’ markets still open in Greater Victoria

The Moss Street and Esquimalt Farmers’ markets are scheduled to take place, with slight variations

Sooke School District promises learning opportunites for students by mid-April

‘No intent to replicate regular school day virtually’ SD62 says

VIDEO: Musician stays physically distant in courtyard show for Langford retirees

Bob Nelson found a way to continue to play for retirement community residents

Trudeau announces 75% wage subsidy for small businesses amid COVID-19

This is up from the previously announced 10 per cent wage subsidy

COVID-19: A message from the publisher

We will be making some changes to our print editions during these unprecedented times

World update, 9:30 p.m. March 27: Positive news in Korea as U.S. hits 100,000 cases

The United States now has the most coronavirus cases of any country in the world

VIDEO: Penguins roam empty halls of Vancouver Aquarium

COVID-19 has forced the Vancouver Aquarium to close access to guests – leaving room for its residents

COVID-19: Qualicum Beach youngster gets car parade for his sixth birthday

Friends get creative after party cancelled due to ongoing pandemic

Kids get back to learning in B.C., online

Ministry of Education rolls out new tool for school

Nanaimo RCMP ask for help locating 17-year-old girl believed to be with 36-year-old man

Mary Cyprich, missing since Thurday, might be in company of Force Forsythe

67 more B.C. COVID-19 cases, two more deaths in Vancouver region

Positive tests found in Surrey, Langley long-term care facilities

‘Now is not the time to bag that peak’: BCSAR manager discourages risky outdoor adventures

Call volumes are not going down, even as the COVID-19 pandemic persists

Most Read