The Bank of Canada will announce a new interest rate today. (Photo by THE CANADIAN PRESS)

Bank of Canada to make interest rate decision, expected to hold steady

OTTAWA — The Bank of Canada will deliver an interest-rate decision today, post fresh projections and provide the first public comments by its senior figures since before the federal election campaign.

The central bank is widely expected to hold its policy rate at 1.75 per cent, where it’s been set for just over a year.

Markets, however, will be focused on what could happen in the coming months — and they will study governor Stephen Poloz’s take on the state of the Canadian and global economies.

Some of the most-prominent indicators — such as strong employment and healthier wages — have underlined Canada’s resilience.

BMO chief economist Douglas Porter wrote in a recent report that both the Bank of Canada and the U.S. Federal Reserve will have rate decisions on the same day for the first time since 2000, when Canada’s central bank started fixing its rate announcement dates.

Porter notes how the Fed is widely expected to cut its borrowing rate today for a third meeting in a row, which would leave Canada with the highest rate in the advanced world.

He says many experts believe it will be unsustainable for the Bank of Canada to keep its rate at that level for long.

During the election campaign, the central bank chose to move itself into a quiet mode to avoid making any possible impact — or the appearance of an impact — on the political contest.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Recollections of well-known families in Red Deer

Past and present families recognized on Family Day

Assault suspect nabbed with sawed-off shotgun

Rocky Mountain House RCMP conduct investigation

New highway to B.C. proposed

The Howse Pass shortcut to British Columbia is worth taking another look… Continue reading

Red Deer RCMP execute search warrant

Heavy police presence on Nash Street

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

Reader’s opinion: Here’s how Premier Kenney can build a stronger Alberta

Apparently, the UPC government has decided that most seniors should pay more… Continue reading

Tournament of Hearts veteran skip Kerry Galusha curls through pain

MOOSE JAW, Sask. — If Kerry Galusha is skipping Northwest Territories at… Continue reading

Andrew Mangiapane scores first hat trick, leads Flames over Ducks 6-4

Flames 6 Ducks 4 CALGARY — Andrew Mangiapane was front and centre… Continue reading

Mielke: Small town Alberta great place to live

There is something to be said for living in small town, Alberta.… Continue reading

Trudeau tightlipped on plan to end protests ‘quickly and peacefully’

OTTAWA — Prime Minister Justin Trudeau was tightlipped Monday about his plan… Continue reading

Red Deer Rebels end B.C. road trip with win over Prince George

Rebels 4 Cougars 2 The Red Deer Rebels finished the B.C. road… Continue reading

Bombardier to sell train unit to France’s Alstom, shedding biggest division

MONTREAL — Bombardier Inc. has reached a US$8.2-billion deal to sell its… Continue reading

Most Read