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.


Latest Economic News

  • Updated privacy policies after Facebook scandal leave room for improvement

    Economic CTV News
    TORONTO -- In the wake of revelations around the alleged misuse of the data of up to 50 million Facebook users, some of the world's biggest technology companies are turning their attention toward convincing the public that their personal information is in safe hands, but their efforts are leaving plenty of room for improvement. Source
  • Facebook: A closer look at the scandal and what it means

    Economic CTV News
    NEW YORK -- Facebook is facing the most serious crisis in its 14-year history as it deals with fallout from a major leak of user data to political consultants associated with the 2016 Trump campaign. Source
  • Africa's young professionals embracing 'gospel of bitcoin'

    Economic CTV News
    KAMPALA, Uganda -- In a sleek new high-rise in Uganda's capital, an enthusiastic lecturer described his financial success with the cryptocurrency bitcoin while his earnings were projected on a screen. "What I have earned in one-and-a-half years from bitcoin is more than I earned in 10 years as a teacher," Richard M. Source
  • World markets roiled by rising fears of U.S.-China trade war

    Economic CTV News
    HONG KONG -- Fears of a trade war roiled financial markets and sent the dollar wobbling Friday after Beijing retaliated against the Trump administration's tariff hikes by threatening import duties on U.S. goods. Stocks plunged on Wall Street after U.S. Source
  • Big telcos not required to sell wholesale network access to tower-less rivals, CRTC says

    Economic CBC News
    The CRTC has once again refused to mandate the big telcos sell wholesale access to their wireless networks to fledgling rivals without towers of their own, a decision critics call a blow for competition and for Canadians fed up with big cellphone bills. Source
  • Boeing will not appeal case against Bombardier at U.S. trade court

    Economic CTV News
    MONTREAL -- Aircraft giant Boeing will not appeal a ruling by the U.S. International Trade Commission that allows its Canadian rival Bombardier to sell its newest commercial jets without heavy duties. Boeing launched a trade case with the independent International Trade Commission last April, arguing that governments in Canada and Britain subsidized development of Bombardier's C Series commercial jets and allowed the Montreal-based company to sell it at unfairly low prices. Source
  • China hikes tariffs on U.S. pork, other goods in trade spat

    Economic CTV News
    In this March 3, 2011, file photo, boneless pork loins sit waiting to be packaged at a grocery store in Des Moines, Iowa. (AP Photo / Charlie Neibergall, File) Source
  • China may hike tariffs on U.S. pork, aluminum, other goods

    Economic CTV News
    BEIJING -- China announced a $3 billion list of U.S. goods including pork, apples and steel pipe on Friday that it said may be hit with higher tariffs in a spiraling trade dispute with President Donald Trump that companies and investors worry could depress global commerce. Source
  • Toys 'R' Us founder dies amid chain's U.S. collapse

    Economic CBC News
    Charles P. Lazarus, the World War II veteran who founded Toys "R" Us six decades ago and transformed it into an iconic piece of Americana, died Thursday at age 94, a week after the chain announced it was going out of business in the U.S. Source
  • 'What keeps me up at night': Trump's trade czar explains hawkish moves on China

    Economic CTV News
    WASHINGTON -- It was U.S. President Donald Trump who announced a broad trade offensive against China on Thursday, with wide-ranging tariffs, an international lawsuit and investment restrictions to combat alleged theft of Americans' intellectual property. Source