The Bank of Canada (BOC) has decided to maintain its overnight rate at 1.75% today.
The BOC is projecting growth to be 1.7% in 2019 – down from 2.1% it projected in late 2018 but have said that Canada’s economy is performing well overall. Unemployment is at a 40 year low, while exports and non energy investments are projected to grow.
According to the Bank of Canada, the overnight interest rate will still need to rise. They stated, “…weighing all of these factors, Governing Council continues to judge that the policy interest rate will need to rise over time into a neutral range to achieve the inflation target.”
The Bank of Canada has been increasing the overnight rate since mid-2017 in order to keep inflation in check. The next announcement is March 6th 2019 so we will look for that update!
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