Bank of Canada keeps policy rate on hold
The Bank of Canada kept its policy rate on hold at 1.75 percent today, as expected. The policy statement of BoC noted that its global outlook stays intact, but further expounded on the rebound in financial market confidence and “waning recession concerns”.
The statement noted that the economic growth of Canada decelerated in the third quarter, but the remainder of its characterization noted underlying strength, especially in housing investment and “unexpectedly” in business investment spending. It added that “the Bank will be assessing the extent to which this points to renewed momentum in investment”.
Moreover, the central bank hinged future policy decisions on its assessment of “the adverse impact of trade conflicts against the sources of resilience in the Canadian economy – notably consumer spending and housing activity”.