Bank of Canada raises overnight rate target to 1 ½ per cent - GIC Wealth Management

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FYI/Blog Bank of Canada raises overnight rate target to 1 ½ per cent

Bank of Canada raises overnight rate target to 1 ½ per cent

Bank of Canada raises overnight rate target to 1 ½ per cent – Bank of Canada

The Bank of Canada today increased its target for the overnight rate to 1 ½ per cent. The Bank Rate is correspondingly 1 ¾ per cent and the deposit rate is 1 ¼ per cent.

The Bank expects the global economy to grow by about 3 ¾ per cent in 2018 and 3 ½ per cent in 2019, in line with the April Monetary Policy Report (MPR). The US economy is proving stronger than expected, reinforcing market expectations of higher policy rates and pushing up the US dollar. This is contributing to financial stresses in some emerging market economies. Meanwhile, oil prices have risen. Yet, the Canadian dollar is lower, reflecting broad-based US dollar strength and concerns about trade actions. The possibility of more trade protectionism is the most important threat to global prospects.

To read full article click on the link below:

https://www.bankofcanada.ca/2018/07/fad-press-release-2018-07-11/?utm_source=RDBA+Email+List+May+2017&utm_campaign=070cf6424c-NEWS_2018_07_11&utm_medium=email&utm_term=0_2fb13e0136-070cf6424c-226120685