Mortgage Blog
Bank of Canada Rate Announcement - December 4, 2019
January 20, 2021 | Posted by: Ken Fadel
In its last rate decision of 2019, the BoC kept its target for the overnight rate unchanged at 1.75%, which is where it has stood since October 2018.
This decision to stand pat was made as number of central banks around the world have cut rates to stimulate economic growth and insulate against the uncertainty of a USA - China trade conflict.
In their statement the BoC noted that Canada's inflation rate continues to hover near its 2.00% target suggesting that the domestic economy is operating near capacity. Economists sense the BoC's tone this statement was more optimistic than that it presented in October as the BoC believes 'There is nascient evidence that the global economy is stabilizing.' Having said that, a rate cut in 2020 remains a possibility as the BoC monitors the impact of the US-China trade war on the Canadian economy.
The BoC will provide further details about its views on the Canadian economy on Thursday, when it provides an updated economic outlook.