Canada's central bank kept its key interest rate at 1.75 percent

OTTAWA (ANTARA) – Canada's central bank, the Bank of Canada (BoC), announced Wednesday (9/04/2019) that it is maintaining its benchmark interest rate at 1.75 percent, while it assesses the extent of the damage caused by the intensification of trade. conflicts over the impact on the national and global economy.

Canada's central bank increased its interest rate to 1.75 percent in October last year, but it has remained unchanged since.

A decision on unchanged interest rates was widely expected despite the difficulties in the Canadian economy bounce strong in the second quarter.

Also read: Central Bank of Canada says rising global debt threatens global economic growth

Last week, Statistics Canada said the country's economy grew at an annualized rate of 3.7 per cent in the second quarter, which was higher than the central bank's forecast of 2.3 per cent.

The central bank expects a slowdown in economic activity in the second half of 2019, focusing on weak spots such as a sharp contraction in Canadian business investment that coincided with rising trade tensions.

The intensifying trade conflict between the United States and China poses a greater drag on global economic momentum than the central bank predicted at its July 10 meeting, the central bank said in a statement.

The Canadian economy is operating close to its potential and inflation is on target. However, escalating trade conflicts and the resulting uncertainty are weighing heavily on the global and Canadian economies.

“In this context, the current level of monetary stimulus remains appropriate,” he added.

Also read: Canadian bank publishes corporate records linked to “Panama Papers”
Also read: Banks: the Canadian economy facing recession

Zera Carpenter

"Typical thinker. Unapologetic alcoholaholic. Internet fanatic. Pop culture advocate. Tv junkie."

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