Home / Canada’s central bank raises key interest rate to 1.5%

Canada’s central bank raises key interest rate to 1.5%

The Bank of Canada on Wednesday hiked its benchmark interest rate to 1.5 percent, the first increase since mid-January, as the Group of Seven economy tries to tame inflation.

The central bank said the country’s economy was chugging along, but said the impact of global trade uncertainty on Canadian exports and investment had grown, in the face of an intensifying tariff war between the US and its partners.

Nevertheless, it said the “estimated impact” of US tariffs on Canadian steel and aluminum, and Canadian countermeasures, on the country’s growth would be “modest.”

The interest rate increase of 25 basis points put the rate at its highest point in a decade.

“Canada’s economy continues to operate close to its capacity,” the bank said in a statement. “Overall, the Bank still expects average growth of close to 2 percent over 2018-2020.”

Inflation “is expected to edge up further to about 2.5 percent before settling back to 2 percent by the second half of 2019,” it said.

The bank said that “higher interest rates will be warranted to keep inflation near target,” adding that it would “continue to take a gradual approach, guided by incoming data.”

The next rate decision is due on September 5.

 

Source: France24

About admin

Check Also

Hearts of Oak vs Karela United: Kosta Papic names squad for first GPL encounter

The new head coach for Hearts of Oak, Kosta Papic has named an 18-man squad …

PHOTOS: Truck crashes into 16 cars at Tema tollgate

Some 16 vehicles have been left damaged at the Tema tollgate end of the Motorway …

Policeman run over and killed by a reckless driver

A policeman identified as Corporal Joseph Manu met his untimely death after a Kia Rhino …

Leave a Reply

Your email address will not be published. Required fields are marked *

Powered by Live Score & Live Score App