A senior Bank of Canada official says the Canadian economy remains resilient despite the global uncertainty caused by the trade war between the United States and China. In a speech to the Ottawa Board of Trade, Deputy governor Timothy Lane said inflation in Canada remains on target and a strong job market points to sources of growth.
Lane made the comments a day after the Bank of Canada announced it would keep its key interest rate target on hold at 1.75 per cent, where it has been set since October last year. In making its rate decision, the bank said global recession concerns are waning, however ongoing trade conflicts and related uncertainty are still weighing on global economic activity and remain the biggest source of risk to its outlook.
The Bank of Canada has stood out from many of its international peers who have moved to cut rates and loosen monetary policy in response to weakness in the global economy. The U.S. Federal Reserve has cut its rate three times this year. However, Lane says the resilience in the economy here at home has allowed the central bank to chart its own course.