Investment
Investment
Investment
Investment
Bank of Canada holds rate steady; cuts growth outlook
The Bank of Canada kept its key interest rate unchanged and said falling energy investment will hobble the economic recovery through next year.
The benchmark rate on overnight loans between commercial banks remained at 0.5 per cent, the central bank said in a decision Wednesday from Ottawa.
Policy makers cut their 2016 growth forecast to 2 per cent, from 2.3 per cent, saying capital spending by oil and gas firms will probably fall 20 per cent next year as prices remain weak.
The overview comes two days after an election that brought Justin Trudeau’s Liberals to power with a mandate to embark on deficit spending to counteract damage from an oil-price shock. The central bank said a recovery has already started with exports outside of commodities boosted by interest-rate cuts in January and July, and a weaker dollar.
....more..
http://m.thestar.com/#/article/busi...da-holds-rate-steady-cuts-growth-outlook.html
Investment
Investment
Investment
Bank of Canada holds rate steady; cuts growth outlook
The Bank of Canada kept its key interest rate unchanged and said falling energy investment will hobble the economic recovery through next year.
The benchmark rate on overnight loans between commercial banks remained at 0.5 per cent, the central bank said in a decision Wednesday from Ottawa.
Policy makers cut their 2016 growth forecast to 2 per cent, from 2.3 per cent, saying capital spending by oil and gas firms will probably fall 20 per cent next year as prices remain weak.
The overview comes two days after an election that brought Justin Trudeau’s Liberals to power with a mandate to embark on deficit spending to counteract damage from an oil-price shock. The central bank said a recovery has already started with exports outside of commodities boosted by interest-rate cuts in January and July, and a weaker dollar.
....more..
http://m.thestar.com/#/article/busi...da-holds-rate-steady-cuts-growth-outlook.html