Bank of Canada leaves interest rates intact

Bank of Canada leaves interest rates intact

On Wednesday, Canada’s key financial institution decided not to change its benchmark interest rate against the backdrop of signs that the current trade conflict between China and the United States had an adverse impact on both global demand as well as commodity prices.

As anticipated, the Bank of Canada announced it was holding its overnight cash rate on hold at 1.75%.

The major bank cited predictions that the global economic expansion was anticipated to soften to 3.4% in 2019 from last year’s reading of 3.7% and pointed to a sudden deceleration to a more sustainable tempo for the American economy.

The bank stressed that there are soaring signs that the US-China trade clash is putting pressure on global demand as well as commodity prices.

In its monetary policy statement, Canada’s major bank cut its forecast for surge in the national economy to 1.7% this year in contrast with the previous year’s outcome of 2.1%, blaming the recent tumble in crude prices.

The major bank also stressed that inflation would probably stay below 2% for much of this year because of lower gasoline prices.

Taking into account all of these factors, Governing Council keeps judging that the policy interest rate should be lifted over time into a neutral range for the purpose of achieving the inflation objective, as the Bank of Canada pointed out.

Market experts had widely anticipated that the Canadian primary financial institution would stand pat, considering slumping crude prices as well as easing wage inflation. However, they still foresee extra two rate lifts for this year.

With core inflation measures still sticking with the 2% objective and also unemployment at a 40-year minimum, they still expect at least two extra Bank of Canada rate lifts this year, as some financial analysts pointed out.


Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera