Bank of Canada holds key rate at 0.75 per cent

Central bank says inflation has been in line with projections and consumption has held up relatively well


BoC Policy Report 20150121

OTTAWA — The Bank of Canada is keeping its trendsetting interest rate locked at 0.75 per cent even as recent weakness in the United States raises questions about the Canadian economy’s underlying strength.

The central bank says it’s standing pat because inflation has been in line with projections and consumption has held up relatively well — even amid the net negative effects of lower oil prices.

The bank, however, plans to keep an eye on the potential economic implications for Canada if the loonie stays higher than it has been in recent months.

The central bank also says while risks to the country’s financial stability remain elevated, they seem to be unfolding as anticipated.

Last week, Bank of Canada governor Stephen Poloz called the weaker-than-expected U.S. economy “slightly puzzling,” but expressed optimism it would start accelerating in the second half of 2015.

While Poloz has been counting on a strengthening American economy to provide a major boost for Canada — so far this year the U.S. has stopped short of expectations.

The Bank of Canada’s key overnight rate has been at 0.75 per cent since January, when it surprised markets by dropping it from a full percentage point due to the “unambiguously negative” impacts of sliding oil prices.

The bank’s next rate announcement is scheduled for July 15, when it will also release its quarterly monetary policy report.

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Bank of Canada holds key rate at 0.75 per cent

  1. Yep, makes it more unattractive to have Canadian money. Canada punishes Canadians who do it right, saver, investors, pensions, RRSPs and money devalues faster than 99% of the people can save.

    Yep, pensions probably shrank in value faster than you could save into it. Say you have a small RRSP as you starting to midlife. Say its $100,000 USD 2 years ago, today its $77,000 USD. I use USD as it a far more stable currency, but you get the same devaluation of Canada if you use the largest currency the Yuan.

    So unless you dropped $23,000 USD into your RRSP in the last two years, your penisoon has less value than 2 years ago.

    The seam above also happens to investors and why no one invests in a devaluing bankrupt country.

    Don’t blame oil as that is propaganda, as oil is just the convenient goat. CAD money was devaluing below 90 cents more than 8 months before oil was last at $100. Just our media pushing the BS.

    Hey CBC, Macleans, why you not print the truths? Why you propaganda? People need the truth.

  2. Doesn’t mater to me. Most of my money is in USD, as it is not being devalued for bankrupt governments in Canada.

    Oh, and please stop the media BS that’s its all oil, its in part oil, but add failing and pyramid debt Ontario and Quebec, and other hopeless bankrupt provinces. CAD money was well below 90 cents when oil was last at a $100. Sad fact is bloated, wasteful, corrupt, bureaucracy to stagnation governance requires we devalue money to keep the ruse of solvency going. They even lie about real inflation, and lapdog media spews the lies and doesn’t have the uts to challenge StatsCan numbers.

    Take GDP, now measure in 76 cent looies, it looks 32$ better than it is. Now measure in Chinese Yuan, USD world currencies, or even Mexican Pesos, Canada has a 30%+ shrinking GDP. A devalued, depreciating nation of delusional idocracy….

    In WORLD terms, Canada is a failing nation. But hey, media, good job on the illusions, propaganda, and denial. Canada is none the less, the next Greece.

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