The Bank of Canada is expected to leave its benchmark interest rate unchanged at 1.75 per cent. (Photo by THE CANADIAN PRESS)

Bank of Canada expected to hold benchmark interest rate as economic clouds gather

OTTAWA — The Bank of Canada is widely expected to leave its benchmark interest rate unchanged at 1.75 per cent today after a 25-basis-point increase at its last setting in October.

This morning’s announcement comes in the wake of a move by the Alberta government to curtail oil production in the province after Jan. 1 to try to clear a crude storage glut that has driven western Canadian oil prices to multi-year lows.

Meanwhile, the recently announced plan to close the General Motors of Canada car plant in Oshawa, Ont., similarly offers a downside risk to future growth.

Bank economists say an unexpected dip in monthly gross domestic product figures in September and lower-than-expected oil prices so far in the fourth quarter have dampened growth expectations and placed in doubt forecasts for a January bank rate increase.

Lower growth prospects are expected to reinforce Bank of Canada Governor Stephen Poloz’s strategy of moving very gradually on increases to its overnight rate.

Economists say they will be closely watching Poloz’s speech on Thursday for signs of how events are affecting his view of the path forward.

Just Posted

Quebec wins ringette gold in overtime

End-to-end thriller played before more than 1,100 fans at Servus Arena

Alberta’s men and women speedskaters take silver in relay

Speedskaters credited hard training for Friday’s success

Photo radar unlikely to change in Red Deer

City participates in photo radar review

Trial into fatal Canada Day crash to continue

A trial into a fatal Canada Day 2016 crash failed to wrap… Continue reading

NEB gives Trans Mountain pipeline expansion its endorsement

CALGARY — The National Energy Board has endorsed an expansion of the… Continue reading

Fashion Fridays: Must-have wardrobe basics

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Local Sports: Tanner Butler: A gifted defenceman

RDC hockey Kings head coach Trevor Keeper had an idea of what… Continue reading

Stettler RCMP looking for hit-and-run driver

A white Dodge truck with a flat deck backed into a car… Continue reading

Seniors: Who owns your medical records?

Have you ever been asked to fill in authorization forms or pay… Continue reading

Ponoka man attacked by dogs issues plea to town council

Troubles with bylaw and handling of court case prompts presentation to council

‘Napalm Girl’ to discuss journey from hatred to forgiveness

Latest Herr Lecture to feature Kim Phuc Phan Thi at LMC

Rabbits saved from barn fire in Ponoka County

The Ponoka County East District Fire Department was called to a barn fire

Abel begins diving season on brink of record for most worlds medals

MONTREAL — Jennifer Abel could make history this summer in Gwangju, South… Continue reading

On eve of return to Toronto, former Raptors star DeRozan says he’s “moved on”

TORONTO — DeMar DeRozan has found closure. When the player once fondly… Continue reading

Most Read