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Interest Rates Left Unchanged

rates The Bank of Canada met today and kept it’s key lending rate as is.  

“The Canadian economy is now operating further above its production potential than had been previously expected,” the Bank said.  However, “all factors considered, the Bank judges that the risks to its inflation projection are roughly balanced, with perhaps a slight tilt to the downside.” 

The Bank also cut Canada’s growth estimate for next year to 2.3% from 2.6%.

Analysts had this to say:

  • “…if the economy succumbs to the downside risks, as we anticipate, a rate cut is probably in the offing, likely by the spring of next year.” – Sal Guatieri, BMO
  • The Bank suggests it “is not planning on adjusting the overnight rate anytime soon, and is going to be on hold for some time.” – Jacqui Douglast, TD Securities: