Canada’s central bank left interest rates unchanged and growth is expected to be near zero this year
Posted by Emvertex
Canada’s central bank decided to leave interest rates unchanged; The central bank also lowered its forecast for economic growth in 2019, which is expected to show little growth this year.
In addition, the central bank removed all comments in its statement about the need to raise interest rates in the future, reflecting that the central bank no longer appears to be in a hurry to raise rates.
This is the fourth time in a row that the central bank has left its benchmark interest rate unchanged at 1.75 per cent. The central bank raised interest rates five times in a row from mid-2017 to last autumn.
The central bank said the abrupt deceleration in the pace of economic growth in recent months was entirely different from that seen in 2017 and much of 2018, largely due to lower oil prices, weak investment and exports.
In addition, the central bank forecast that the economy would grow by only 0.3 percent in the first quarter of this year due to the slowdown in property market activity. However, the economy is expected to accelerate in the second quarter due to increased consumption and business investment.