OTTAWA, ON. (NEWS 1130) – The Bank of Canada has left its benchmark interest rate at 0.5 per cent. The country’s central bank adds it’s keeping a watchful eye on “significant uncertainties” that it warns could alter the economy’s improving trajectory.
Bank of Canada maintains overnight rate target at 1/2 per cent https://t.co/JBGeKUFCeG
— Bank of Canada (@bankofcanada) March 1, 2017
The bank’s rate announcement comes as Canada tries to assess the direction of US economic policy under President Donald Trump and the potential fallout from any changes he may bring.
The bank has said some US proposals which include tax cuts, a border tax and protectionist policies would have material consequences for Canadian investment and exports.
In an unusually short statement, the Bank of Canada uses slightly stronger language when referring to US uncertainties than it did in January.
The bank says improvements in recent data releases have been consistent with its projections and it expects fourth-quarter growth might have been slightly stronger than predicted.
However, on the downside, it says Canadian exports continue to face competitiveness challenges while the job market has seen weaker growth in wages and hours worked.