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