Bank of Montreal predicting interest rate cut

OTTAWA -- Economists at the Bank of Montreal are joining those predicting the Bank of Canada will cut its key interest rate next week.

See Full Article

The Bank of Montreal cited low oil prices, a weak business outlook survey and recent comments by governor Stephen Poloz as reasons for its new forecast.

Poloz recently said that while the steep slide in oil prices can be mitigated to a degree, there was no simple policy fix to the ailing economy.

CIBC also says that the odds have tilted in favour of a rate cut by the central bank, either next week or in April.

The key overnight rate sits at 0.5 per cent, and Poloz is scheduled to make his interest rate announcement next Wednesday.

The Bank of Canada cut its key interest rate twice last year in an effort to cushion the impact of falling oil prices on the economy.

By cutting its target for the overnight rate, the central bank is trying to push down the interest rates charged by Canada's big banks, making it cheaper for companies to borrow money to grow their businesses.

A cut also likely means lower interest rates for variable rate mortgages, lines of credit and other loans based on the prime rate, likely to boost consumer spending.

But the banks have not passed on the full savings of the Bank of Canada's most recent rate cuts to consumers.



Advertisements

Latest Economic News

  • Rise of the machine: New owners of Jean Machine pitch relaunch after insolvency

    Economic CBC News
    Four months after acquiring Jean Machine, the new owner of the denim retailer says it plans on "cleaning up" the look of its stores as part of an effort to woo back customers. Gerry Bachynski, president and CEO of Comark Services Inc. Source
  • Why Twitter won't ban U.S. President Donald Trump

    Economic CTV News
    NEW YORK -- Twitter has made it clear that it won't ban Donald Trump from its service, whether the president follows its rules against harassment or not. That's no surprise: The president's tweets draw attention to the struggling service, even if tweets mocking reporters and rivals undercut Twitter's stated commitment to make the service a welcoming place. Source
  • Businesses, cities cashing in on total solar eclipse crowds

    Economic CTV News
    BARTLETT, Tenn. -- Millions of eyes will be fixed on the sky when a total solar eclipse crosses the U.S. in August, and it's likely many of them will be safely behind the special glasses churned out by a Tennessee company. Source
  • Samsung poised to unseat Intel as king of microchips

    Economic CTV News
    SEOUL, Korea, Republic Of -- Intel's more than two decade-long reign as the king of the silicon-based semiconductor is poised to end Thursday when South Korea's Samsung Electronics elbows the U.S. manufacturer aside to become the leading maker of computer chips. Source
  • Jean Machine's new owners look to spruce up stores in effort to woo shoppers

    Economic CTV News
    TORONTO -- Four months after acquiring Jean Machine, the new owner of the denim retailer says it plans on "cleaning up" the look of its stores as part of an effort to woo back customers. Source
  • Horgan travels to Washington, D.C., to talk softwood with Trump trade reps

    Economic CTV News
    VICTORIA -- Premier John Horgan is set to meet with some of the Trump administration's top trade officials Thursday in Washington, D.C, where he intends to press to resolve the softwood lumber trade dispute between Canada and the United States. Source
  • World shares gain on strong earnings, dovish Fed policy

    Economic CTV News
    TOKYO -- Global shares were mostly higher Thursday, supported by strong corporate earnings and the Federal Reserve's decision to pause its slow-moving campaign to raise interest rates. Asian shares got a boost from Samsung's report of record quarterly profit and sales. Source
  • SHARE report finds there is poor corporate reporting on Indigenous issues

    Economic CTV News
    A group that advises activist shareholders hopes a new report will do for Indigenous issues what has already been done for environmental causes -- put them on the boardroom table. "The purpose is to start to delve into the issue of the business role in reconciliation and where investors fit in that," said Delaney Greig, author of the report for SHARE Canada. Source
  • Samsung, surmounting legal woes, logs record profit on chips

    Economic CTV News
    SEOUL, Korea, Republic Of -- After a tumultuous year when its chief was jailed and its fire-prone smartphones were recalled and then discontinued, Samsung Electronics has reported record high quarterly earnings thanks to booming demand for memory chips. Source
  • Suncor posts higher net earnings despite oilsands production shortfall

    Economic CTV News
    CALGARY -- Suncor (TSX:SU) is reporting higher net earnings in the second quarter despite lower than expected oilsands production due to maintenance down time at its northern Alberta projects. The company says it had net earnings of $435 million or 26 cents per share in the three months ended June 30, compared with a net loss of $735 million or 46 cents per share in the same period last year, during which a wildfire near Fort McMurray, Alta. Source