The Bank of Canada kept rates unchanged Wednesday morning, stating that it expects economic growth to moderate.
The bank looks at the uncertainties when making a decision, notably geopolitical developments and trade policies – meaning NAFTA negotiations.
Employment growth has been very strong and wages have shown some improvement, supporting robust consumer spending in the third quarter which is positive but not enough to drive rates higher.
Business investment continued to contribute to growth after a strong first half, and public infrastructure spending is coming on.
But based on the outlook for inflation the bank judged that the current stance of monetary policy remains appropriate.
The bank did say that higher interest rates will likely be required over time, with wage growth and inflation being important factors.
So, it’s steady as she goes, so don’t look for a rate hike until March of next year.
Comments