Bank of Canada to make interest rate decision, expected to hold steady

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OTTAWA — The Bank of Canada will deliver an interest-rate decision today, post fresh projections and provide the first public comments by its senior figures since before the federal election campaign.

The central bank is widely expected to hold its policy rate at 1.75 per cent, where it’s been set for just over a year.

Markets, however, will be focused on what could happen in the coming months — and they will study governor Stephen Poloz’s take on the state of the Canadian and global economies.

Some of the most-prominent indicators — such as strong employment and healthier wages — have underlined Canada’s resilience.

BMO chief economist Douglas Porter wrote in a recent report that both the Bank of Canada and the U.S. Federal Reserve will have rate decisions on the same day for the first time since 2000, when Canada’s central bank started fixing its rate announcement dates.

Porter notes how the Fed is widely expected to cut its borrowing rate today for a third meeting in a row, which would leave Canada with the highest rate in the advanced world.

He says many experts believe it will be unsustainable for the Bank of Canada to keep its rate at that level for long.

During the election campaign, the central bank chose to move itself into a quiet mode to avoid making any possible impact — or the appearance of an impact — on the political contest.

 

This report by The Canadian Press was first published Oct. 30, 2019.

The Canadian Press