Poloz Puts Canadian Rates Firmly on Hold Amid Global Trade Risks

Canadian dollar nears 8-month high ahead of Bank of Canada rate decision

The bank's governing council will also consider positive signs on trade, including a cease fire between China and the USA and the lifting of American tariffs on Canadian goods, he said.

The bank raised its second-quarter annualized economic growth estimate for Canada to 2.3% from 1.3%, in part because of temporary factors such as the reversal of weather-related softness and a surge in oil exports.

Fallout from the uncertain global trade environment was also reflected in the bank's updated economic projections, which were also released Wednesday in the bank's quarterly monetary policy report.

Adding to the sense the Bank of Canada has moved marginally more dovish is Governor Stephen Poloz's reluctance to talk about raising interest rates - as he has in the past - at a press conference after the decision.

The Bank of Canada's latest read on the strength of this year's economy is still short of the pace it had expected in January, when its first policy report of the year projected 1.7 per cent growth for 2019.

"The Bank of Canada will have to decide whether it believes that there's further for this momentum to go", said Mendes, noting that the oil-producing province of Alberta has partially lifted production cutbacks. The bank's interest rate has been at 1.75 per cent since last October. A rate-reduce by the U.S. Federal Reserve could presumably well maybe impact their earnings as neatly, as lenders possess had weaker earnings growth in their dwelling market of unhurried supplemented by stronger showings from their U.S. and worldwide businesses. But its tone suggests a cut is more likely than an increase, a shift from earlier this year.

At the same time, the central bank said some of the recent pick-up will be temporary, and growth will decelerate in the third quarter.

The USD/CAD pair seems to be edging lower following these remarks and was last down 0.1% on the day at 1.3110. We are anticipating a couple of rate cuts from the Fed. "Canada is still somewhat optimistic that growth will pick up in Q2... though they're still concerned about trade tensions, a slowing global economy". "Taken together, the degree of accommodation being provided by the current policy rate remains appropriate". That conflict is "curbing manufacturing activity and business investment and pushing down commodity prices", the bank said in a statement accompanying its rate decision.

Broader global trade tensions are driving down commodity prices and are outweighing some positive developments, such as the removal of USA tariffs on Canadian steel and aluminum.

The Bank of Canada is unique among its peers in that most data is trending in the right direction. The Financial institution of Canada is determined to present one other hobby-rate announcement on Wednesday, which follows the news final week that the Canadian economic system shed around 2,200 jobs in June (despite the indisputable truth that the unemployment rate remained at a reach-account low).

Related News:

Most liked

Borderlands 3 Social Features, Livestreaming Tools and More Outlined
Borderlands 3 will allow you to play whilst matchmaking, allowing you to finish some busywork while you wait to find some friends. It looks as if Gearbox is trying to make the multiplayer in Borderlands 3 the most robust in the series.

Operation Apocalypse Z Live Stream Time and PS4 News
Drop into the new mode Alcatraz Portals Horde to battle to survive enemies and the horde. As well, other new maps, The Museum of Unnatural History and Havana , will be available.

There Was 1 Player Taken In Today’s NFL Supplemental Draft
As was expected, Thompson was the first player taken on the Supplemental Draft, and he also wound up being the only one. Creates adequate separation on short-to-intermediate targets in his direction and has an above-average long speed.

Qualcomm Debuts Snapdragon 215: Boasts Fast CPU, Dual-Camera Support
If we talk about the connectivity features, the new Qualcomm 215 SoC will come with Wi-Fi 802.11 ac, USB 2.0, Bluetooth 4.2 etc. The platform also supports HD+ resolution (1,560 x 720 pixels) displays with a tall aspect ratio of 19:5:9.

Nintendo Switch Lite’s lack of adaptability defeats the Switch’s objective
The Switch Lite comes with a smaller 5.5-inch screen, but the official announcement does not mention the resolution of the screen. As a result, some games such as 1-2 Switch will require pairing seperate Joy-Cons in order to be played.

Kali Linux Now Available for Raspberry Pi 4
The Raspberry Pi 4 has been lauded for its improved specs while keeping the low price tag of the original. Compatibility woes are nothing new with USB-C, but in this case, the problem lies with the Pi.

Megan Rapinoe Celebrates World Cup Soccer Win With Nipsey Hussle Quote
The US Women's Soccer team took home the W during the World Cup, winning their fourth title. Then, she added, "We look forward to holding those feet to the fire".

Oil prices edge up amid geopolitical tensions, demand worries
The Gulf of Mexico is home to 17% of USA crude oil output which stands at around 12 million barrels per day (bpd). Andarko's total Gulf output averaged 166,000 barrels of oil equivalent per day in the first quarter.

UK's Boris Johnson refuses to back envoy to U.S. amid diplomatic row
He added that he didn't think it was "necessarily the right thing" for the President to tweet the remarks. "So my answer is no". I for one would be prepared to seek a judicial review to prevent parliament being bypassed.

IBM Closed The Biggest Deal Ever
IBM and Red Hat have deep open source values and experience. "The acquisition of Red Hat is a game-changer". IBM expects it to add about two points of compound annual revenue growth over a five-year period.

Three key World Cup battles
Unfortunately for New Zealand , Williamson's two centuries, in back-to-back games, are the only centuries the team has mustered. On the other hand, New Zealand hasn't had a good opening start as Martin Guptill has failed to deliver the goods.

IBM Patents Smartwatch That Opens Up Like A Tablet
It is therefore not entirely impossible that IBM wants to make another attempt in the young market of flexible display devices. There are four compartments to the device in smartwatch mode with each of the compartments storing a pair of screen tiles.

Manchester United Identify New Target?
Perhaps Arsenal can call on their striker to turn agent and speak with his global teammate if the club are indeed interested. I want to show the whole world what I am capable of". "They are giving me the opportunity to be able to go elsewhere".

$199 Nintendo Switch Lite dedicated handheld device announced
Nintendo have confirmed that the Switch Lite will release worldwide on Friday, September 20, 2019. As such, it does not support shared gameplay, with two players each using a Joy-Con controller.

Marcus Morris could spurn Spurs for Knicks?
The 2019 National Basketball Association free agency period opened a little over a week ago with a chaotic start. The Spurs' seemingly shrewd offseason could totally crumble if they end up losing Marcus Morris to NY .