Bank of Canada holds key interest rate at 2.25%
The central bank said growth is rebounding and inflation should ease, while 36 Reuters economists expected the hold.
- The Bank of Canada held its benchmark overnight rate at 2.25% on Wednesday for the sixth consecutive time, with the Bank Rate at 2.5% and deposit rate at 2.20%.
- Governing Council judged the current rate appropriate as the economy rebounds from a weak first quarter, when growth stalled amid trade policy uncertainty and Middle East conflict disruptions.
- Canada's economy is projected to grow 2.5% annualized in the second quarter, while inflation rose to 3.2% in May driven by elevated gasoline prices from Middle East tensions.
- Governor Tiff Macklem noted inflationary pressures remain "volatile and highly dependent on events in the Middle East," though the bank expects inflation to ease gradually toward its 2% target.
- Financial markets expect the central bank to remain on hold through the fall before raising the policy rate by a quarter-point in December as economic growth gains momentum.
43 Articles
43 Articles
The Bank of Canada (BDC) opted for the status quo on Wednesday by maintaining its policy rate at 2.25%, for the sixth consecutive time.
Canada central bank holds key rate steady, says economy improving
Canada's economy had sputtered over the past year, as Trump's tariffs squeezed key sectors like auto-making, forced job losses and sent jitters across the business community. Canada entered a technical recession earlier this year, after reporting two consecutive quarters of economic contraction. But the Bank of Canada on Wednesday pointed to signs of a rebound. "Canada's economy is showing signs of improvement," the bank said. Bank of Canada Gov…
Bank of Canada holds key rate steady as confidence grows in economic rebound
OTTAWA — The Bank of Canada held its benchmark interest rate steady for the sixth consecutive time on Wednesday and said it expects the economy to rebound after a rough start to the year. The central bank’s policy rate remains at 2.25 per cent after the hold, which was widely expected by economists. Bank of The post Bank of Canada holds key rate steady as confidence grows in economic rebound appeared first on Medicine Hat News.
Bank of Canada Holds Interest Rates Steady, Says Outlook for Economic Growth and Inflation Is Positive
OTTAWA—The Bank of Canada held its interest rate steady at 2.25 percent for a sixth straight meeting, saying that economic growth appears to be recovering and inflation looks set to fall as oil prices decline. “The data we have received since April have increased our confidence that the economy is indeed working its way through this period of global upheaval,” Bank of Canada Governor Tiff Macklem told reporters on July 15. Macklem said economic …
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