Hold­ing steady

Bank of Canada says un­cer­tainty still clouds stronger growth, keeps rate at 0.5 per cent

Cape Breton Post - - Business -

Un­cer­tain­ties con­tinue to ob­scure the econ­omy’s strongerthan-ex­pected start to the year, the Bank of Canada said Wed­nes­day as it stuck with its trend­set­ting in­ter­est rate of 0.5 per cent.

In ex­plain­ing its de­ci­sion to hold the rate, the cen­tral bank once again high­lighted weak wage growth and the slow­ing pace of un­der­ly­ing in­fla­tion as ex­am­ples the econ­omy still has room for im­prove­ment.

For bal­ance, the bank’s sched­uled rate an­nounce­ment pointed to the sur­pris­ingly healthy start to the year in ar­eas such as em­ploy­ment, consumer spend­ing and the hous­ing markets. In Wed­nes­day’s state­ment, the bank added bet­ter busi­ness in­vest­ment num­bers to the list.

“Re­cent eco­nomic data have been en­cour­ag­ing,” the bank said.

“Consumer spend­ing and the hous­ing sec­tor con­tinue to be ro­bust on the back of an im­prov­ing labour mar­ket, and these are be­com­ing more broadly based across re­gions.”

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