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.

Just Posted

Castlegar teen cited for drinking and driving near Rossland

The 17 year old put his car in a ditch.

Crown declines to lay charges in Castlegar spree

RCMP were called to eight incidents regarding the same person in a six hour time frame.

Snowfall warning for Kootenay and Paulson passes

Up to 30 cm expected in mountain passes Saturday and Sunday.

Moose tests positive for Chronic Wasting Disease in northwest Montana

This is the first time the disease has been detected in the species in Montana

Community Futures launches cannabis consultation program

The Cannabis Business Transition Initiative helps businesses move into the legal economy

Bye bye Bei Bei: Giant panda born in U.S. zoo heads to China

Panda heads back to China as part of cooperate breeding program

$2.9 million judgment in B.C. blueberry farm sabotage lawsuit

The new owners saw most of their farm ruined just as they took possession

B.C. to more than double sales tax on vaping products

Tax up from 7 to 20 per cent, tobacco tax up two cents

29 B.C. students in Hong Kong amid tense protests, university siege

Eight UVic and 21 UBC students still in Hong Kong

‘Midget’ no more: Sweeping division name changes coming to minor hockey in Canada

Alpha-numeric division names will be used for the 2020-2021 season and beyond

Ottawa urges CN and union to continue talks as 3,200 workers go on strike

The rail workers began their strike after failing to reach a deal by a midnight deadline

Student tells B.C. Supreme Court she wasn’t allowed to leave Indigenous smudging ceremony

Girl cross-examined Monday in Nanaimo courtroom, case continues Tuesday

Trans Mountain received $320M in government subsidies in first half 2019: report

The money included $135.8 million in direct subsidies and $183.8 million in indirect subsidies

UPDATED: Vancouver Island’s Joe gets suspended sentence in Teddy the dog cruelty case

Melissa Tooshley expected in court on Thursday in same case

Most Read