Money Bank of Canada expected to raise rate

13:22  11 july  2018
13:22  11 july  2018 Source:   msn.com

Banks raise prime rate to 3.7 per cent

  Banks raise prime rate to 3.7 per cent Banks raise prime rate to 3.7 per centRoyal Bank, TD Canada Trust, BMO, and Scotiabank all say they will increase their prime rate by a quarter of a percentage point to 3.70 per cent, effective Thursday.

Prior to the Bank of Canada 's move, their rates were all 3.2 per cent. The central bank was widely expected to raise its rate after data in recent months showed gross domestic product growing, the job market healthy and the cost of living ticking higher.

Bank of Canada expected to raise interest rates this week, the Canadian dollar starts the week with a bit of a lift and stocks rose last week despite global

a close up of a building© Provided by thecanadianpress.com The Bank of Canada is widely expected to raise its trend-setting interest rate today for the first time in six months.

Thanks to stronger economic data, experts are predicting governor Stephen Poloz to hike the rate from its current level of 1.25 per cent.

Poloz has followed a cautious, data-dependent approach in recent months and he hasn't touched the rate since raising it in January, a move that came after two earlier increases in the second half of 2017.

The central bank's rate decision arrives as Canada faces significant trade-related uncertainties, including stalled NAFTA talks, U.S. steel and aluminum tariffs and the threat of more duties on the automotive sector.

Bank of Canada expected to resume tightening key interest rate Wednesday

  Bank of Canada expected to resume tightening key interest rate Wednesday The Bank of Canada is widely expected to boost a key interest rate on Wednesday as it resumes efforts to "wean" the economy off low borrowing costs. The bank's target for the overnight rate — what major financial institutions charge each other for one-day loans —   has been at 1.25 per cent since mid-January. Since then, the bank has stood firm on three subsequent rate announcements. That string is generally expected to end this week. As of Tuesday, the implied probability of a rate hike to 1.5 per cent stood at just over 96 per cent, according to Bloomberg.

The Bank of Canada will quite likely raise borrowing costs again before summer. Where the central bank ’s interest- rate path Watch'More moments of drama' expected as Canada readies countertariffs against the U.S. Watch‘We will not back down’: Ottawa strikes back at U.S. with tariff targets.

The Bank of Canada is not expected to change its benchmark interest rate on Wednesday morning. When it raised its rate in January, the bank listed a number of reasons for optimism, including better-than- expected consumer spending, a booming job market, strengthening business

Poloz recently said the impacts of the U.S.-Canada trade dispute would figure prominently in the bank's decision-making process for today's rate announcement.

Many analysts, however, expect Poloz to hike because of healthy numbers of late, including the Bank of Canada's own survey on business sentiment, tightened job markets and solid wage growth.

The Bank of Canada will also release its updated economic projections today in its latest edition of its quarterly monetary policy report.

Bank of Canada to hike rates in July, despite trade woes: Reuters poll .
Bank of Canada to hike rates in July, despite trade woes: Reuters pollThe central bank has raised rates three times since July 2017, and on May 30 said higher interest rates were warranted, dropping more cautious language about additional monetary stimulus being needed.

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