The central bank is still showing much caution, however
The Bank of Canada’s latest decision to hold overnight interest rates at 1.0% should come as no surprise, amid an ongoing slack in employment numbers and short-live rises in inflation.
This is reflective of the Bank’s seeming absence of haste in slowing down the economy, according to Dominion Lending Centres chief economist Dr. Sherry Cooper.
Read more: Higher rates might make 5-year mortgages popular once more
“Third-quarter GDP growth … was in line with the Bank’s expectations at 1.7%. Canadian growth was expected to slow in Q3 while remaining above potential in the second half of this year,” Cooper wrote in her latest analysis.
“Consumer spending has remained very strong, and business investment and public infrastructure spending are contributing to growth. The Q3 sharp decline in exports is expected to be temporary.”
Cooper noted that the decision stemmed from a pronounced caution on the BoC’s part, amid considerable uncertainty in geopolitics and trade policies. This is despite the Bank citing buoyant global growth, higher oil prices, and eased financial conditions as net positives that have characterized the economy recently.
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Industry professionals wade in on Bank of Canada announcement
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This is reflective of the Bank’s seeming absence of haste in slowing down the economy, according to Dominion Lending Centres chief economist Dr. Sherry Cooper.
Read more: Higher rates might make 5-year mortgages popular once more
“Third-quarter GDP growth … was in line with the Bank’s expectations at 1.7%. Canadian growth was expected to slow in Q3 while remaining above potential in the second half of this year,” Cooper wrote in her latest analysis.
“Consumer spending has remained very strong, and business investment and public infrastructure spending are contributing to growth. The Q3 sharp decline in exports is expected to be temporary.”
Cooper noted that the decision stemmed from a pronounced caution on the BoC’s part, amid considerable uncertainty in geopolitics and trade policies. This is despite the Bank citing buoyant global growth, higher oil prices, and eased financial conditions as net positives that have characterized the economy recently.
Related stories:
Industry professionals wade in on Bank of Canada announcement
Mortgage borrowers at risk of “payment shock” after BOC’s rate hikes
