Interest Rate Announcement from the Bank of Canada
The Bank of Canada is sticking with its interest rate of 0.5%, saying uncertainties continue to overshadow the economy's strange-than-expected start to the year. In explaining its decision, the bank highlighted weak wage growth and the softening rate for underlying inflation as examples the economy still has room for improvement.
The banks scheduled rate announcement comes after it raised its 2017 growth projection last month following a surprisingly healthy start to the year in areas such as employment, consumer spending and the housing markets. In wednesday's statement, the bank added better business investment numbers to the list
The banks statement, however, also predicted that the very strong growth over the first 3 months of the year will be followed by some moderation in the second quarter, even through at the same time it expects the U.S. economy to rebound. The banks statement also said while recent government policy measures on real estate have contributed to more sustainable outlooks for household debt, the rules have yet to have a substantial cooing effet on hot housing markets.
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