Interest Rate To Remain at Current Levels

The Bank of Canada today maintained its target for the overnight interest rate at 1 per cent. Projections for Canadian economic growth have been increased to 3.1 per cent this year and 2.1 per cent in 2018, with growth of 1.5 per cent forecast for 2019. According to the This Senior Loan Officer Survey, results point to nearly unchanged overall business-lending conditions in the third quarter. This is the fifth consecutive quarter of unchanged overall conditions. Demand for credit in the third quarter was unchanged following an increase in the second quarter of 2017.

According to CBCNEWS, ” The bank has already hiked its rate twice this year — once in July and then again last month. Those moves came amid signs that Canada’s economy was heating up, but since then economic indicators have been slightly more subdued, which helps to explain the bank’s cautious tone.

The Bank of Canada said, “The current stance of monetary policy is appropriate … While less monetary policy stimulus will likely be required over time, (we, the BOC) will be cautious in making future adjustments to the policy rate.”