bank of canada
Canadian economic growth showing signs of re-emerging after it nearly stalled in late 2018 and early 2019.
The central bank says it will take over the administration of the Canadian Overnight Repo Rate Average, from financial markets data firm next year.
Target at 1.75% for a sixth-straight meeting as the country bounces back from a weak stretch.
Prices rose in all eight of the index’s major components compared with a year ago.
Bank of Canada’s measure for corporate confidence dropped into negative territory for the first time since Q3 of 2016.
The central bank left its interest rate unchanged last month.
The BoC decided not to increase interest rates.
Uncertainty related to US policies has kept business investment lower than where it should be.
The bank is now projecting growth to be just 1.7 per cent in 2019.
Lower growth prospects expected to reinforce Poloz’s strategy of moving very gradually on increases to overnight rate.
Bank of Canada signals it will gradually raise benchmark interest rate from its current level of 1.75% to between 2.5% and 3.5%.
Helping drive the growth was the mining, quarrying and oil and gas extraction sector which rose 0.9 per cent.
The rate is now higher than it’s been in about a decade.
Household debt has been identified as key vulnerability.
BoC concerned with NAFTA implications for inflation.