Bank of Canada Hold Rates at 0.50% Will Await Impact of Federal Budget

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Jumat, 15 Juli 2016

Bank of Canada Hold Rates at 0.50% Will Await Impact of Federal Budget

The Bank of Canada left its interest rate unchanged as expected reference today as the central bank will wait and see what Ottawa plans to spend to stimulate the economy in the upcoming federal budget before taking any further action ..

the central bank kept its benchmark rate target overnight at 0.5 percent, saying in a statement "the short-term economic outlook remains broadly the same as in January."

The bank reduced its benchmark rate twice last year in order to stimulate Canada's economy, which had been beset by tanking oil prices. When the bank revealed its quarterly monetary policy report in January, the central bank lowered its projection for economic growth this year to 1.4 percent from two percent.

Bank of Canada governor Stephen Poloz said at the time that all tax measures in the federal budget - expected to be unveiled at the end of the month - could hit this prediction

based his statement Wednesday, it is clear that the bank is OK to wait on the bench to. see what the government has up its sleeve before choosing to tinker with lending rates again

his statement Wednesday said so :. "An assessment of the impact of fiscal measures for the next federal budget will be incorporated into the April projection Bank."

via CBC

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