Bank of Canada Sees Economy Evolving as Projected in July, Keeps Rates Unchanged

On Wednesday, Sept. 9, the BoC kept the overnight rate target at 0.50 percent feeling inflation and economic growth were in-line with July’s projections.
Bank of Canada Sees Economy Evolving as Projected in July, Keeps Rates Unchanged
The Bank of Canada kept rates unchanged on Sept. 9 as the economy evolves according to July’s projections. Its governor, Stephen Poloz, speaks at a news conference in Ottawa on July 15 after the release of the monetary policy report. The Canadian Press/Adrian Wyld
Rahul Vaidyanath
|Updated:

OTTAWA—It’s a bit of déjà vu all over again for the Bank of Canada.

Back in late May, the central bank felt the economy was evolving in line with its then most recent April projections. Therefore, no changes were made to interest rates.

Developments then went from bad to worse in the energy sector and, in July, the BoC cut rates for the second time this year and revised its growth projections lower.

The belief that the impact on the economy of the plunge in oil prices was going to be more front-loaded, but not larger, had been shattered.

The stimulative effects of previous monetary policy actions are working their way through the Canadian economy.
— Bank of Canada
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
twitter
Related Topics