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Money Bank of Canada expected to raise rate

13:22  11 july  2018
13:22  11 july  2018 Source:   msn.com

Bank of Canada's Poloz keeps markets guessing on July rate move

  Bank of Canada's Poloz keeps markets guessing on July rate move Bank of Canada's Poloz keeps markets guessing on July rate moveLoad Error

The Bank of Canada is widely expected to raise its benchmark interest rate during a policy announcement this week, despite concerns over U.S. trade policy and the threat of tariffs on the automotive sector. Economists from 10 out of 11 primary dealers of Canadian government securities

Bank of Canada expected to raise interest rates this week, the Canadian dollar starts the week with a bit of a lift and stocks rose last week despite global

a close up of a building© Provided by thecanadianpress.com The Bank of Canada is widely expected to raise its trend-setting interest rate today for the first time in six months.

Thanks to stronger economic data, experts are predicting governor Stephen Poloz to hike the rate from its current level of 1.25 per cent.

Poloz has followed a cautious, data-dependent approach in recent months and he hasn't touched the rate since raising it in January, a move that came after two earlier increases in the second half of 2017.

The central bank's rate decision arrives as Canada faces significant trade-related uncertainties, including stalled NAFTA talks, U.S. steel and aluminum tariffs and the threat of more duties on the automotive sector.

Canadian home ownership costs hit 'multi-decade highs': RBC

  Canadian home ownership costs hit 'multi-decade highs': RBC Canadian home ownership costs hit 'multi-decade highs': RBCAfter improving slightly in the final three months of last year, home affordability worsened once again at the start of this year, according to Royal Bank of Canada, with housing costs hitting a "multi-decade high.

Recent signals from the Bank of Canada governor, combined with strong economic data, have experts widely predicting Poloz will raise his trend-setting rate “We expect the central bank to remain on the sideline this week, an opinion that runs counter to the market’s view.” Other experts argue that in the

The Bank of Canada today increased its target for the overnight rate to 1 ½ per cent. Although there will be difficult adjustments for some industries and their workers, the effect of these measures on Canadian growth and inflation is expected to be modest.

Poloz recently said the impacts of the U.S.-Canada trade dispute would figure prominently in the bank's decision-making process for today's rate announcement.

Many analysts, however, expect Poloz to hike because of healthy numbers of late, including the Bank of Canada's own survey on business sentiment, tightened job markets and solid wage growth.

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

BoC rate hike has both pros and cons .
The Bank of Canada's latest interest rate hike means higher borrowing costs for consumers with variable-rate mortgages, loans or lines of credit, but it is also good news for savers and future homeowners. The decision to increase its benchmark interest rate to 1.5 per cent on Wednesday prompted all of Canada's Big Six banks to raise their prime rates, thereby passing the rate increase along to their customers.

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