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Stable global economy enables Bank of Canada to hold rates steady

12/4/2019

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​#BankOfCanada; #SteadyInterestRate; #StableGlobalEconomy

Ottawa, Dec 4 (Canadian-Media): Bank of Canada is 
one of the only central banks that navigated the trade wars without cutting interest rates this year, owing to stable global economy leaving Canada with the highest policy rate among advanced economies, media reports said.
Picture
Bank of Canada. Image credit: Wikipedia
“Future interest rate decisions will be guided by the Bank’s continuing assessment of the adverse impact of trade conflicts against the sources of resilience in the Canadian economy,” policy makers led by Governor Stephen Poloz said in the statement.​
On global outlook, policy makers said financial markets are being supported by easing measures by other central banks, and while trade uncertainty persists, the Bank of Canada noted commodity prices and the currency have been stable.

The Bank of Canada said that the current consistency of core inflation around 2 percent with an economy operating near capacity, the expected acceleration of inflation in the coming months would only be temporary due to year over year movements in gasoline prices.
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