Bank of Canada to make interest rate announcement ahead of federal budget

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.

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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.