Bank of Canada governor Stephen Poloz is expected to leave the interest rate unchanged. (Photo by THE CANADIAN PRESS)

Bank of Canada to weigh in on economy, expected to leave interest rate unchanged

OTTAWA — Bank of Canada governor Stephen Poloz is widely expected to leave his trend-setting interest rate unchanged today — and he appears in no hurry to move the rate any time soon.

The policy announcement will come at a time when the economy is starting to show signs of picking up its pace after a winter deceleration that was largely caused by a drop in oil prices.

Last month, Poloz held the rate at 1.75 per cent for a fourth-straight policy decision and set aside talk of hikes — at least until the economy rises from what he’s described as a temporary slowdown.

The sudden down shift has also forced the central bank to cut its 2019 growth forecast — a reduction that comes after the economy ran at close to full tilt for most of 2017 and 2018.

The bank continues to keep its eye on the evolution of heavy household debt loads, oil markets and the threats of global trade unknowns, which have become particularly uncertain in recent weeks.

Many economists expect the bank to leave the interest rate untouched until at least late in the year and perhaps longer.

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

Just Posted

Refresh of Liberal government’s agenda comes amid new looming COVID-19 crisis

Gov. Gen. Julie Payette will detail government’s plans

Late-stage study of first single-shot vaccine begins in US

One of the world’s largest coronavirus vaccine studies

City’s COVID-19 cases jump to nine from six

Central zone active cases remains lowest of all zones

Michael Dawe: Battle against Typhoid fever was hard for Red Deer to win

Much of Red Deer and central Alberta’s history included outbreaks of serious contagious diseases

Adversity just part of a ‘weird year’ for Montreal Impact: Thierry Henry

Impact look to rebound when they visit the New England Revolution

Tokyo Olympics CEO suggests relaxed entry rules for athletes

IOC consider many scenarios for how games can open on July 23, 2021

Elton John announces new North American dates for final tour

‘Farewell Yellow Brick Road Tour’ returns in 2022

Murray, Nuggets hang on in Game 3, cut Lakers’ lead to 2-1

Murray, Nuggets hang on in Game 3, cut Lakers’ lead to 2-1

Indians clinch post-season berth; Braves claim NL East title

Indians clinch post-season berth; Braves claim NL East title

Major League Rugby to kick off fourth season in March 2021 with 13 teams

Major League Rugby to kick off fourth season in March 2021 with 13 teams

Most Read