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Bank of Canada holds interest rate at 1.5%, but pause might be brief

Bank of Canada holds interest rate at 1.5%, but pause might be brief | iNFOnews.ca
The Bank of Canada is seen in Ottawa on May 30, 2018. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA – The Bank of Canada is leaving its interest rate unchanged today in what could be a brief pause along its gradual path to higher rates.

The central bank kept its benchmark at 1.5 per cent — but many experts are predicting it could introduce another increase as early as next month.

In a statement today, the Bank of Canada says the strength of recent economic numbers reinforce the governing council's view that more hikes will be necessary to keep inflation from rising above its target.

The bank says business investment and exports have shown solid growth in recent quarters despite persistent uncertainty about the North American Free Trade Agreement and other trade policy developments.

It says the housing market has begun to stabilize as households adjust to higher interest rates and new policies.

The bank says credit growth has moderated and improvements in labour and wages have helped support consumption.

Bank of Canada governor Stephen Poloz has raised the rate four times since mid-2017, with his most-recent increase in July.

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Marshall Jones

News is best when it's local, relevant, timely and interesting. That's our focus every day.

We are on the ground in Penticton, Vernon, Kelowna and Kamloops to bring you the stories that matter most.

Marshall may call West Kelowna home, but after 16 years in local news and 14 in the Okanagan, he knows better than to tell readers in other communities what is "news' to them. He relies on resident reporters to reflect their own community priorities and needs. As the newsroom leader, his job is making those reporters better, ensuring accuracy, fairness and meeting the highest standards of journalism.

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