Thursday, 17 January, 2019


Bank of Canada raises interest rate for first time in 6 months

Conrad Doyle | 12 July, 2018, 00:03

At the rate decision, BoC officials said they expect "higher interest rates will be warranted to keep inflation near target", offering some insight on the stance of the bank heading into future rate decisions.

BNN Bloomberg speaks with PIMCO's Ed Devlin about his take on the Bank of Canada's decision to raise rates amid ongoing economic challenges the country is facing.

The Bank of Canada will also release its updated economic projections today in its latest edition of its quarterly monetary policy report.

At the same time, household spending will represent a smaller and smaller share of overall growth due to the dampening effects of higher interest rates and stricter mortgage rules, it said.

Governor Stephen Poloz said trade tensions were the biggest issue on the table.

As in April, the projection incorporates an estimate of the impact of trade uncertainty on Canadian investment and exports.

The central bank said it expects the Canadian economy to expand by 2 per cent per year on average between 2018 and 2020, noting that recently implemented tariffs on steel and aluminium will likely have only "modest" effects on growth and inflation.

"This U.S. dollar move offsets, and even more so, the somewhat hawkish BoC hike", said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in NY.

CPI and the Bank's core measures of inflation remain near 2 per cent, consistent with an economy operating close to capacity.

"This should be consistent with a more firm pricing for another hike this year", said Alvise Marino, FX strategist at Credit Suisse in NY.

The Bank of Canada raised its benchmark interest rate by a quarter percentage point to 1.5 per cent Wednesday, even as the economy faces fallout from widening trade uncertainty.

Canadian government bond prices were mostly lower across a flatter yield curve, with the two-year down 4 cents to yield 1.959 per cent and the 10-year falling 5 cents to yield 2.156 per cent.

Recommended

loading...
...

Model bitten by shark while posing for photos Model bitten by shark while posing for photos Earlier this month, a woman on vacation in Dugong Bay, Australia, experienced a similar ordeal with a tawny nurse shark. Katarina posted them to social media, where she's been overwhelmed with comments asking for details.

Brexiters unveil plan to derail Theresa May's Chequers proposals Brexiters unveil plan to derail Theresa May's Chequers proposals May is holding a meeting of her new-look cabinet on Tuesday, following a forced reshuffle in the aftermath of the resignations. Aldridge-Brownhills MP Wendy Morton said: "The Prime Minister is showing the same level of resilience that she always does".

Federer, Nadal close in on dream final Federer, Nadal close in on dream final World number one Nadal faces a tricky test against power-hitter del Potro in his first Wimbledon quarter-final since 2011. But he had never made it beyond the fourth round at Wimbledon until this week, carried by his booming serve.

Twitter reacts to Anderson's epic victory over Federer Twitter reacts to Anderson's epic victory over Federer Federer ended up with more points won than Anderson in this match, but ultimately the difference came down to two unforced errors. The comeback was just beginning. "It feels great to be in the last four", Djokovic said , via Wimbledon's Twitter account .

Proud of England’s performance at the World Cup 2018, says Wayne Rooney Proud of England’s performance at the World Cup 2018, says Wayne Rooney World Cup semi-finals England - Croatia will be held on July 11 in Moscow. Why can't the Celtic soul brothers hate England like we used to?. .

How To Watch England Vs How To Watch England Vs Every World Cup game can be streamed in English with the Fox Sports Go app . The World Cup final is Sunday in Moscow at 11 AM ET/8 AM PT.

Cardi B counter 'sues' ex manager for R203 million Cardi B counter 'sues' ex manager for R203 million Almanzar's entertainment-related activities to an additional 25% (from the management agreement's previous 20%)". The suit, which came weeks after her hit album Invasion of Privacy was released, is for $10 million.

Kent fans watch England in World Cup semi-final against Croatia Kent fans watch England in World Cup semi-final against Croatia The Duke of Cambridge, who is president of the Football Association, told the Three Lions the whole country is behind them. I scored but we delivered a good match and I'm very proud of everyone".

Captain Safdar likely to be arrested on Sunday Captain Safdar likely to be arrested on Sunday Sharif's daughter, considered to be his political heir, was also sentenced to a seven-year term in connection with the same case. Sharif and his daughter are now in London , where the former prime minister's wife is undergoing cancer treatment.

Russell Knox Final Round Winning Highlights | 2018 Dubai Duty Free Irish Open Russell Knox Final Round Winning Highlights | 2018 Dubai Duty Free Irish Open Knox is set to climb into the world's top 50, having tied for second place at the French Open last week, and is fifth in the Race to Dubai.

Liverpool pre-season: Every player fighting for his future Liverpool pre-season: Every player fighting for his future The former Borussia Dortmund manager added that he believes that Karius will continue to be criticised until "he has a few fantastic games".

A look at what's ahead in the World Cup A look at what's ahead in the World Cup Croatia defender Dejan Lovren said, who plays in England for Liverpool, said his side's status as underdogs doesn't bother him. But Dalic said: "I don't think England had easy opponents, they made it look easy".

Airbus is designing a rover that will retrieve Martian samples Airbus is designing a rover that will retrieve Martian samples Clearly it would be a mission of huge firsts for humanity, but the real action will start once the samples show up here on Earth. The goal is to have machines on Mars by the end of the next decade collecting samples and sending them back to Earth.

Galaxy S8 update brings this new feature to Samsung’s smartphone Galaxy S8 update brings this new feature to Samsung’s smartphone Unfortunately, we only have the front to look at this time around, as there isn't a separate render for the back of the phone. In any case, I imagine Samsung is keeping its big redesigns for next year's Note 10, because 10 is a special number and all.

Na cruises to victory at Greenbrier for first win since 2011 Na cruises to victory at Greenbrier for first win since 2011 Defending champion Xander Schauffele , who was one shot behind when the round started, bogeyed five of his first six holes. Anirban Lahiri of India, who shot a 61 in the second round, shot 71-76 on the weekend to end up tied for 39th at 5 under.