Rate unchanged is -ve for Canadian $ ?
Bank of Canada maintains overnight rate target at 1 ¾ per cent
The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent. The global economic expansion is moderating largely as expected, but signs are emerging that trade conflicts are weighing more heavily on global demand. Recent encouraging developments at the G20 meetings are a reminder that there are upside as well as downside risks around trade policy. Growth in major advanced economies has slowed, although activity in the United States remains above potential. Oil prices have fallen sharply since the October Monetary ... (full story)
Added at 10:08am
Trouble in the oil patch clouds Bank of Canada’s rate hike path
Bank of Canada Governor Stephen Poloz has added the deep discount on Canadian crude to his list of worries, casting significant doubt on the more aggressive path of future interest rate hikes he laid out less than two months ago. As widely expected, the central bank kept its key rate unchanged at 1.75 per cent on Wednesday after five rate increases since mid-2017. But the statement, which accompanied the rate announcement, focused on a clutch of negatives weighing on the Canadian and global economies, including the steep discount on Canadian crude, uncertainty hanging over business investment and the U.S.-China trade ... (full story)