Bank of Canada announces rate

by 07 Dec 2016
The Bank of Canada is holding its benchmark interest rate at 0.5 per cent as economic conditions move along largely in line with its expectations.

In making the scheduled announcement, the central bank says while the global economy has strengthened, international uncertainty has negatively affected business confidence and investment among Canada's trading partners.

The bank says Canada's growth performance has also been close to its expectations, including a strong rebound in the third quarter.

It says Canadian inflation, which it carefully analyzes when making rate decisions, is slightly below what it had anticipated in large part because of lower food prices.

The decision to maintain the rate was widely anticipated by experts and comes ahead of an announcement next week by the U.S. Federal Reserve, which is expected to raise its key interest rate.

In October, the Bank of Canada downgraded its growth outlook and governor Stephen Poloz said its governing council actively discussed cutting the trendsetting rate before deciding to keep it on hold.
 

COMMENTS

  • by Pauline 12/7/2016 10:52:31 AM

    Lower food prices!! That statement is utter hogwash!! Not only have food prices gone up drastically, packaging has decreased in size and the contents are less. Effectively, we have had food increases of 20% and rising! Disposable income is less, household debt has never been higher and we are poised for a huge correction, to the detriment of over-worked, Canadians. No wonder banks aren't really very excited about mortgages, because the return on credit card debt is FASTER ! MERRY CHRISTMAS.

  • by zahid ali 12/7/2016 11:11:06 AM

    Hogwash is right regarding Lower Food Prices...obviously those blessed and gifted people do shop for groceries...then again why should they..when they are able and allowed to eat on our dime.

  • by Annette B. 12/7/2016 11:47:51 AM

    Obviously the goverment and we don't shop at the same stores. Stats Canada shows that meat, fresh frui, eggs and fresh vegetables have gone down year over year between -7.4 to -3.5. Not in my neighbourhood.

    But holding rates is a move in the right direction - because feds have already made purchasing a home so much more difficult for first time buyers because of the stress test requirements.

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