Bank of Canada raises rate, predicts economic resilience despite trade risks

Image of daily change for major currencies

This is the second rate increase of the year, though many economists think the Bank of Canada will be on hold for the rest of 2018 because of the trade war with the US.

"Higher interest rates will be needed to keep inflation on target and that's consistent with our actions today", said Bank of Canada governor Stephen Poloz.

US tariffs on the auto sector's integrated cross-border supply chains would have "large impacts on investment and employment", the Bank of Canada warned Wednesday in its accompanying monetary policy report.

Business loans, student loans, lines of credit and home equity lines of credit will cost more to service.

The decision, a move that prompted some of the big banks to start raising their prime rates later in the day, arrived in the middle of a trade dispute between Canada and the United States that's expected to hurt both economies.

But it is watching what happens in trade tensions with the United States, that it predicts will cut almost 0.7 per cent from economic growth by the end of 2020.

The Bank said Canada's economy is operating "close to capacity", implying that it expects to see inflation rise in the future.

With two daughters off school over summer, finding affordable activities is key for Florence van Dijk, especially following news of yet another interest rate hike.

The rates had previously been set at 3.45 per cent. Talks to renegotiate the North American Free Trade Agreement stalled earlier this year, and Canada imposed retaliatory tariffs this month.

It means consumers with variable rate mortgages or upcoming mortgage renewals will have to pay more.

OTTAWA-The Bank of Canada on Wednesday raised its benchmark interest rate by a quarter of a percentage point to 1.50% in response to solid economic data and expectations that exports and business investment will continue to grow.

"The Bank maintained a cautious tone while highlighting its data dependency, that said, this was not the "dovish" hike many, including ourselves, expected".

Related News:

  • AirPlay has finally made its way to Sonos speakers

    AirPlay has finally made its way to Sonos speakers

    Apple's smart speaker supports AirPlay 2, too, and you can ask Siri on the speaker to play music across your Sonos setup. Over the coming months, Airplay 2 will be enabled on speakers from Bang & Olufsen, Libratone, Denon, and others.
    Xbox One 1810 firmware brings Dolby Vision support for streaming

    Xbox One 1810 firmware brings Dolby Vision support for streaming

    Xbox One S and Xbox One X are getting Dolby Vision support in the new 1810 update, now available for Preview members. For now, it appears that Xbox One S & X Dolby Vision support will be limited to Netflix streaming.
    Baby found alive buried under debris in woods

    Baby found alive buried under debris in woods

    In the probable cause affidavit, prosecutors said Crowley had originally said he would take the officers to the baby's location. He had a sparkle in his eye. "I just wrapped that baby up just like a father would any child in need".
  • USA  warns of Nord Stream 2 sanctions risk

    USA warns of Nord Stream 2 sanctions risk

    Five Western firms have invested in Nord Stream 2 - Wintershall and Uniper of Germany, Austria's OMV, Anglo-Dutch supermajor Shell, and France's Engie.

    ‘I think they like me a lot in the UK’

    The issue is 'Do they have freedom to protest, freedom to assemble and should they be allowed to do so? Meanwhile, Theresa May's government is nervously anticipating disruption from the guest himself.
    FBI Agent: My Work Has Never Been Tainted by Political Bias

    FBI Agent: My Work Has Never Been Tainted by Political Bias

    The sharp tone of Strzok's statement set the stage for a contentious hearing following hours of closed-door questioning last week. Strzok said the disparaging comments were merely political commentary between colleagues during a remarkably heated election.
  • One firefighter dead after explosion in downtown Sun Prairie

    One firefighter dead after explosion in downtown Sun Prairie

    WE Energies Spokeswoman Amy Jahns said workers for a private contractor struck a 4-inch natural gas main. Barr had been with the department at least 10 years, Sun Prairie Fire Chief Christopher Garrison said.
    Trump claims credit for defence boost after reportedly threatening to quit North Atlantic Treaty Organisation

    Trump claims credit for defence boost after reportedly threatening to quit North Atlantic Treaty Organisation

    President Donald Trump he holds a news conference after participating in the NATO Summit in Brussels , Belgium on July 12, 2018. Finally, he will head to Helsinki for a summit with Putin. "That would be my ultimate", Trump said.
    Magic Leap Will Demo in Select AT&T Stores, Ships This Year

    Magic Leap Will Demo in Select AT&T Stores, Ships This Year

    AT&T is investing in Magic Leap, the ultra-secretive mixed reality company that has kept its upcoming product largely under wraps. The deal will likely have Magic Leap One relying on AT&T's 5G network, though the device is also expected to work over Wi-Fi.
  • Epic announced $8m Fortnite summer series

    Epic announced $8m Fortnite summer series

    PDT) so that they can properly implement the new content into the game. We'll do our best to provide insight on those as soon as possible.
    Samsung Galaxy Note9's price and release date revealed

    Samsung Galaxy Note9's price and release date revealed

    Now it seems that the "gold" Samsung Galaxy Note 9 is not gold or yellow at all - just the all-new S Pen that goes with it. According to the media, the information comes from a Samsung employee who attended a pre-briefing for the device.
    Priest held, three others to surrender in Kerala sexual assault case

    Priest held, three others to surrender in Kerala sexual assault case

    It is also possible that the priests may surrender in court or in front of the investigation team, according to India Today . In shocking a statement to the police, she had also said that even her confidential confessions were used to blackmail her.


Most liked

Oppo Find X all set to launch in India today
Interestingly, there is no fingerprint scanner and the phone relies on the front camera as a biometric tool to unlock the phone. The display screen sports 93.8 per cent screen-to-body ratio which is protected by Corning Gorilla Glass 5 protection.

Mercedes-AMG working on Cayman rivaling sports vehicle
A mid-engine layout is now in the discussion, but AMG also hasn't ruled out a more conventional front-engine layout. Further solidifying the new Mercedes-AMG car's status as a challenger to the 718 Cayman is its proposed design.

Bentley to celebrate centenary with Mulsanne homage to brand founder
Edition will make its debut at the Pebble Beach Concours d'Elegance in late August and customer deliveries will begin in 2019. The vehicle also comes with Onyx paintwork, although customers can select other colours from Bentley's colour pallet.

Sony Xperia XA2 Plus brings high-res audio to the mid-range
Based on Android Oreo, it runs the Qualcomm Snapdragon 630 processor, which is backed by 4GB/6GB RAM. Though the post did not reveal the price, Xperia XA2 Plus is expected to be a mid-range smartphone .

Roborace completes its first autonomous hillclimb run during Goodwood test session
The two needed to take all of the 1965 Mustang's components and ensure they could handle precise control from onboard computers. His job is to watch the vehicle do its thing, and be ready to quickly take the controls in case the system gets choked up.

Aston Martin Resurrects Cygnet Concept With A V8 Engine
This means that in certain circumstances, the Cygnet's owner could even enter it in FIA-approved motorsport, if they so desired. Aston Martin Cygnet is probably the company's most forgotten vehicle of all time.

Emmanuel Macron rubbishes Donald Trump's increased North Atlantic Treaty Organisation spending claim
At NATO, Trump did not specify which countries had committed to what, and it remained unclear whether any had changed their plans. Trump tweets: "Why are their (sic) only 5 out of 29 countries that have met their commitment? ".

Dancing FBI agent, accused in backflip gunfire incident, can carry weapon again
Denver District Attorney's Office spokesman Ken Lane said toxicology tests on Bishop "do not support further charges". The video then shows the agent putting the gun back into a waistband holster and walking away with his hands up.

Assad forces set to take city where war began
With critical help from Russian Federation and Iran, Assad has now recovered most of Syria. The attack resulted in deaths among the Syrian army, it said, without providing figures.

LeBron James May Star In An Upcoming Comedy Movie He’s Producing
Deciding enough was enough, Never painted over the mural on Wednesday, explaining its erasure on Instagram. Never said his next project is a Lakers team mural that includes all players-including James.

Prince William's heartfelt message to England squad after World Cup dreams end
In a modern sporting miracle, Croatia, a nation of just four million people, will play in the FIFA World Cup™ Final. It said: "The more I see, the more important it is that when 'attacking this tournament" we tell our own story.

Riyad Mahrez aiming to win Champions League with Manchester City
They deserve a lot of credit for what they have achieved because reaching the semi final is very, very hard . Last season they lost in the quarter-final and I know they have the ambition to go further the next season.

Injuries Reported After Plane Crashes With 11 People Aboard in Alaska
Alaska State Troopers have identified the plane as a Taquan Air flight. "It's a pretty good-sized rescue", Johnson said. A Coast Guard helicopter located the crash site and hoisted the pilot and passengers to safety, U.S.

Fireball seen across Midwest skies Sunday evening
Instead, it was a rather ordinary space rock burning up in that extraordinary way they do when they collide with our atmosphere. AMS defines fireball as an extremely bright meteor, as bright as Venus when it appears as the morning or evening star.

Fulham sign Jean Michael Seri and Maxime Le Marchand from Nice
Seri moved to Europe from his homeland in 2012 when he joined Porto on loan, before switching to fellow Primeira Liga side Pacos de Ferreira the following year.