OTTAWA — The Bank of Canada on Wednesday left its key overnight interest rate on hold at 4.50% as expected and raised its growth forecast for this year, while…
The Bank of Canada last month became the world’s first major central bank to pause its tightening campaign. Governor Tiff Macklem said he wanted to let the eight previous rate hikes sink in and would hold off on further increases as long as inflation came down as forecast.Sign up to receive daily headline news from the Calgary Herald, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
“Demand is still exceeding supply and the labor market remains tight,” it said, adding that growth would stay weak through the rest of the year. It dropped language from January saying there was a chance for “a couple of quarters with slightly negative growth.” “There are some warning shots here” about possible tightening in the future, said Doug Porter, chief economist at BMO Capital Markets, citing the comments on demand outpacing supply and on the labor market. “On balance, I would still expect the bank to remain on hold for quite some time.”
The Canadian dollar steadied at 1.3465 per U.S. dollar after the rate decision, staying little changed on the day.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Majority of economists expect Bank of Canada to keep key interest rate steady through 2023Markets still expect more than 50 basis points of cuts, pricing fuelled by fears last month over stresses in the U.S. and European banking sector
Read more »
ELLE Decoration Canada: Discover Our Spring 2023 Issue | Elle CanadaWe're excited to release the Spring 2023 issue of ELLE Decoration Canada, featuring the rise of colour and travelling to exceptional places through your home — on newsstands now!
Read more »
Economists, Bank of Canada say Canada 'not immune to spillovers' amid recent banking turmoilThe Bank of Montreal's chief economist Doug Porter says markets are 'incredibly good' at discovering areas of weakness, and that he 'wasn’t sure we’ve seen the end of this.'
Read more »
World Bank raises 2023 growth outlook but warns on banking turmoil, oil prices - National | Globalnews.caWorld Bank Group President David Malpass said on Monday that the lender has revised its 2023 global growth outlook slightly upward.
Read more »
Ottawa is offering a 25-year, high-interest GIC: It's called the Canada Pension PlanThe decision on when to apply for CPP becomes clearer when you think of it as an investment, not income, says Jason Heath. Find out more.
Read more »