Canada keeps the current key interest rate
Jan. 10, 2019
Global Korean Post
The Bank of Canada decided to remain the current interest rate.
On Jan. 9, 2019, The Bank of Canada announced to maintain its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.
Stephen S. Poloz, Governor of the Bank of Canada said at the opening statement of Monetary Policy Report (MPR), “Here in Canada, lower oil prices have reached the point where they will have material consequences for our macroeconomic outlook. And, our housing sector is taking longer than expected to stabilize.”
The central bank forecasts the global growth of 3.4 per cent in 2019—the same figure it had in October—but this is a material moderation from 3.7 per cent in 2018.
”Our outlook point to a downgrade in growth for 2019 to about 1.7 per cent, from 2.1 per cent previously. This results in a modest reduction in our forecast for inflation for 2019, but we expect to be back at 2 per cent by the end of this year.”
The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or “overnight”) funds among themselves; the Bank sets a target level for that rate. This target for the overnight rate is often referred to as the Bank’s policy interest rate.
Governing Council continues to judge that the policy interest rate will need to rise over time into a neutral range to achieve the inflation target.
The Bank of Canada has a plan to announce the interest rate for 2019 over 8 times.
By Global Korean Post