Bank of Canada to make interest rate decision, offer analysis of economy

OTTAWA – The Bank of Canada will announce later this morning whether it will follow other global central banks in lowering the overnight interest rate amid concerns about a weakening global economy.

Governor Stephen Poloz is widely expected to hold the rate at 1.75 per cent as the bank delivers its first policy announcement — or public commentary of any kind — since early July.

Many market analysts are expecting a shift in tone from the Bank of Canada that will crack open the door to a possible rate cut — or rate cuts — in the final months of 2019.

They will be scouring the bank’s accompanying analysis of the global economy’s deterioration and what it means for Canada.

The global economic environment has deteriorated since the bank warned in July how widening global trade conflicts were posing a threat to Canada’s stronger-than-expected rebound.

Recent data — including last week’s economic growth report for the second quarter — have shown the domestic economy has indeed bounced back but the numbers have pointed to some concerning signs like slowing domestic demand.