Bank of Canada expected to offer economic outlook in rate announcement

OTTAWA - The Bank of Canada is expected to make its latest announcement on interest rates later today.

And while there is little expectation of a change to its overnight rate target, economists will be looking for any clues as to how the central bank views the economy.

See Full Article

The Bank of Canada's key interest rate stands at 0.5 per cent after being cut twice last year.

The announcement comes two weeks before a federal budget that is expected to open the spending faucets for infrastructure projects in an effort to stimulate the economy.

During its monetary policy report in January, the central bank lowered its economic growth projection for this year to 1.4 per cent from two per cent.

Governor Stephen Poloz said at the time that any fiscal measures contained in the federal infrastructure spending plan could bump that forecast.

CIBC chief economist Avery Shenfeld said in a research note last week that he expects the bank to deliver a "dovish" message in its announcement.

"The Canadian economy still has a doughnut hole in the middle, but there's some fresh icing on the rest of it. The hole is the space vacated by a plunge in energy sector investment spending and the resulting job losses in the oilpatch, both of which are slated to continue, with the recent climb in crude immaterial so far," Shenfeld said.

"But the icing has been that the rest of the economy looks a bit brighter than some expected, and that exports are beginning to provide a much needed lift."



Advertisements

Latest Economic News

  • Belgium joins legal action against tainted egg 'cheats'

    Economic CTV News
    BRUSSELS -- Belgium's Agriculture Minister Denis Ducarme says the government will join in legal action against those responsible for the egg contamination scandal, which has hit at least 17 countries. Ducarme told The Associated Press Wednesday that "the Belgian government wants to take part in civil proceedings. Source
  • Sears Canada chairman steps down so he can bid to buy retailer

    Economic CBC News
    The executive chairman of Sears Canada has stepped down in order to head up a bid to buy the company. According to an employee memo obtained by CBC News, Brandon Stranzl will step away from his day-to-day operations at the company to instead focus on putting together a bid to buy the company and keep it going once it emerges from its current restructuring. Source
  • Sears Canada executive chairman steps down to make bid for retailer

    Economic CTV News
    TORONTO - Sears Canada executive chairman Brandon Stranzl is stepping away from his role to launch a bid for the retailer, which is restructuring under court protection from creditors. A memo to staff says the goal is to create a path for the company to emerge from creditor protection. Source
  • GM shares to be delisted from TSX in November

    Economic CTV News
    TORONTO - General Motors Co. (TSX: GMM.U) is delisting its shares from the Toronto Stock Exchange in Canada effective at the end of November. The company's shares will still be traded in New York. Source
  • Resale homes should carry energy use label by 2019, environmental groups say

    Economic CTV News
    OTTAWA - A coalition of environmental groups wants to see homes listed for resale in Canada to carry information about how much energy they use. Ten organizations, including the Pembina Institute, the Canadian Energy Efficiency Alliance and The Atmospheric Fund, want the federal government to implement nearly two dozen policies to cut energy use in commercial and residential buildings. Source
  • Judge OKs Takata request to halt some lawsuits over air bags

    Economic CTV News
    DOVER, Del. -- A Delaware bankruptcy judge is temporarily halting the prosecution of lawsuits filed by Hawaii, New Mexico and the U.S. Virgin Islands against Japanese auto-parts supplier Takata over its lethally defective air bag inflators. Source
  • What's coming for President's Choice Financial customers when CIBC sets up Simplii

    Economic CTV News
    TORONTO -- How President's Choice Financial customers will be affected by the creation of Simplii Financial, a new brand from CIBC, which will absorb the accounts of some two million current PC Financial account holders. Source
  • Protests at Google offices over worker's firing are cancelled

    Economic CTV News
    This Tuesday, July 19, 2016, file photo shows the Google logo at the company's headquarters in Mountain View, Calif. (AP Photo/Marcio Jose Sanchez, File) Source
  • Ikea says its new Halifax-area store will hold grand opening next month

    Economic CTV News
    HALIFAX - Ikea's new Halifax-area store will open its doors next month. The Scandinavian furniture chain says the 30,000-square-metre store in Dartmouth Crossing will welcome its first customers at 9 a.m. on September 27. Source
  • NAFTA, Round 1: U.S. opens talks by insisting on major changes to pact

    Economic CTV News
    WASHINGTON -- NAFTA negotiations are underway -- and the United States says it wants major changes to the agreement, not mere tweaks. U.S. trade czar Robert Lighthizer welcomed his Canadian and Mexican counterparts to Washington, D.C. Source