Bank of Canada Rate Announcement - March 18, 2018
April 18, 2018 | Posted by: Crescent Mortgage Corp.
The Bank of Canada kept its key overnight target rate unchanged at 1.25% today as it recognized weakness seen in housing and investment in exports
Despite the fact many of the key ingredients for are now in place for higher rates, the BoC stated it remains “cautious with respect to future policy adjustments.”
Having said that, the economy’s overall capacity to grow is also increasing as the BoC upped its estimate of potential output growth for 2018-2020 which means the economy’s growth could accelerate without a corresponding increase in inflation.
For 2018, the BoC is expecting the economy to grow 2.00%, which is down 20 bps from earlier projections. Growth is predicted to be stronger than expected in 2019 and 2020, at 2.10% and 1.80% respectively as a result of federal and provincial fiscal measures.