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

PHOTOS: Small crowd gathers to watch 231-tonne stacker-reclaimer load onto barge crane

The Dynamic Beast barge crane, known for work with Johnson Street Bridge, makes a return

National Drug Drop-Off month aims to reduce substance abuse by house-bound youth

Expert says there is misconception prescribed medication is safe to take

Saanich Peninsula Hospital Auxiliary hosts pop-up fundraiser in Sidney

Temporary store to feature unique hand made gifts, collectibles, clothing, books and more

Victoria mayor wants newspaper boxes removed from downtown streets

Mayor Lisa Helps says the boxes are not needed, often filled with garbage

Esquimalt artists take to great outdoors amid coronavirus

Group invites budding, or just willing artists, to join at Saxe Point

Crews work overnight to try to put out wildfire on Pender Island

Fire department and B.C. Wildfire Service crews extinguishing fire in ‘extremely difficult terrain’

Crews work overnight to try to put out wildfire on Pender Island

Fire department and B.C. Wildfire Service crews extinguishing fire in ‘extremely difficult terrain’

SOOKE HISTORY: A peek into the journal of John George Whiffin

Elida Peers | Contributed One of our most popular walks is on… Continue reading

Michael Buble among 13 British Columbians to receive Order of B.C.

Ceremony will be delayed to 2021 due to COVID-19

U.S. border communities feel loss of Canadian tourists, shoppers and friends

Restrictions on non-essential travel across the Canada-U.S. border have been in place since March 2`

Rollout of COVID-19 Alert app faces criticism over accessibility

App requires users to have Apple or Android phones made in the last five years, and a relatively new operating system

Alleged impaired driver sparks small wildfire near Lytton after crash: B.C. RCMP

Good Samaritans prevented the blaze from getting out of control

Most Read