Bank of Canada to make interest rate announcement and update economic outlook

OTTAWA – The Bank of Canada is expected to make its latest interest rate announcement this morning and update its economic outlook.

Economists widely expect the central bank will leave its key interest rate target on hold at 1.75 per cent.

However, there is a difference in opinion in what they expect the Bank of Canada will do later this year so they will be scrutinizing what the central bank says in its quarterly monetary policy report.

The Bank of Canada has kept its key interest rate on hold for more than a year even as many of its international peers have moved to cut rates and loosen monetary policy in response to weakness in the global economy.

The central bank has said the Canadian economy remains resilient despite global economic uncertainty.

Changes to the Bank of Canada’s key interest rate target generally affects the prime rates at the country’s big banks that are used to set the rates charged for variable-rate mortgage and lines of credit.

This report by The Canadian Press was first published Jan. 22, 2020.

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