Bank of Canada Announcement Shows Caution
The Bank of Canada has announced today that it will leave its key policy rate alone at 1% for the time being. It notes that employment has risen and the Canadian economy is moving towards full capacity but it does not want to disturb the growth that has been realized this year after experiencing slower economic growth during a drastic petroleum price downturn in the past few years.
In particular, the BoC has stated: “global outlook remains subject to considerable uncertainty, notably about geopolitical developments and trade policies.”
It has decided to walk with caution in its bid towards bringing rates to what it considers a more normal range.
The Bank rate is 1%, and the prime rate of interest is 3.2%