Mortgage Blog

Bank of Canada Rate Announcement - January 22, 2020

January 22, 2020 | Posted by: Ken Fadel

As expected, the BoC kept its target for the overnight rate unchanged at 1.75%, a level it has remained at since October 2018.

In its statement the central bank predicted weaker fourth quarter (0.3%  down from 1.3%) growth will bleed into early 2020 (first quarter growth of 1.3%, down from earlier forecast of 1.7%) , with the Canadian economy gaining steam later this year due in large part to easing global trade tensions.  

The BoC also made slight adjustments to its annual GDP growth numbers, stating the economy grew by 1.6% in 2019, and projecting 1.6% and 2% for 2020 and 2021 respectively.

Inflation is not expected to deviate far from the central bank's target of 2.00%.  Economists have viewed the BoC's latest comments as 'more dovish' then expected and as such predicts a 0.25% rate cut seems likely in April. 

The next BoC rate announcement is scheduled for March 4th.

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