BoC raises key lending rate for 1st time in 7 years

[K_teela]

http://www.cbc.ca/news/business/bank-canada-interest-rate-monetary-policy-1.4200814

The Bank of Canada has raised its key interest rate as expected to 0.75 per cent — the central bank's first move upward in the cost of borrowing in seven years.


"The Federal Reserve will also likely increase rates in [the fourth quarter]," Cooper said in a release. "Look for a slow crawl upward in interest rates from both central banks in 2018."

The economy "can handle very well this move we have today and of course you need to preface that with an acknowledgment that of course interest rates are still very low," Poloz told reporters.

"People need to understand that in the full course of time I don't doubt that interest rates will move higher, but there's no predetermined path in mind at this stage."

The bank's next decision on interest rates is scheduled for Sept. 6.



With the economy performing well, the bank has also nudged up its forecast for growth this year. The bank said real gross domestic product (GDP) is now expected to grow by 2.8 per cent in 2017, up from the April outlook of 2.6 per cent.

The central bank said growth is expected to moderate over the next two years, coming in at two per cent in 2018 and 1.6 per cent in 2019

[Hassel99]

https://www.castanet.net/news/Business/ ... rest-rates

[Omnitheo]

Nice to see the economy performing well.Good job Trudeau

[jimmy4321]

Despite oil prices being quite low.

[frazdog]

Good news as we are going to need a very robust economy to generate the revenue to keep up with the Liberal's spending!