Bank of Canada holds interest rate at 1.5%, but pause might be brief | iNFOnews | Thompson-Okanagan's News Source

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Bank of Canada holds interest rate at 1.5%, but pause might be brief

The Bank of Canada is seen in Ottawa on May 30, 2018.
Image Credit: THE CANADIAN PRESS/Sean Kilpatrick
September 05, 2018 - 9:00 AM

OTTAWA - The Bank of Canada is leaving its interest rate unchanged today in what could be a brief pause along its gradual path to higher rates.

The central bank kept its benchmark at 1.5 per cent — but many experts are predicting it could introduce another increase as early as next month.

In a statement today, the Bank of Canada says the strength of recent economic numbers reinforce the governing council's view that more hikes will be necessary to keep inflation from rising above its target.

The bank says business investment and exports have shown solid growth in recent quarters despite persistent uncertainty about the North American Free Trade Agreement and other trade policy developments.

It says the housing market has begun to stabilize as households adjust to higher interest rates and new policies.

The bank says credit growth has moderated and improvements in labour and wages have helped support consumption.

Bank of Canada governor Stephen Poloz has raised the rate four times since mid-2017, with his most-recent increase in July.

News from © The Canadian Press, 2018
The Canadian Press

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