The Bank of Canada is in 'wait and see' mode

pulse

March 1, 2017 2:22 PM

The latest interest rate decision from the Bank of Canada.

Bank of Canada Governor Stephen Poloz takes part in a news conference in Ottawa, Ontario, Canada, July 13, 2016.

The Bank of Canada has held rates again at 0.50%, as virtually everyone had expected.

"Overall, recent data on the global and Canadian economics have been consistent with the Bank's projection of improving growth," the bank wrote in a short accompanying policy statement.

"In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected," it added. "While there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the United States."

Notably, the Bank of Canada also held rates the last time around, which was two days before the inauguration of US President Donald Trump.

At the time, the bank wrote in the accompanying policy statement that "uncertainty about the global outlook is diminished, particularly with respect to the United States." In particular, the bank was likely waiting to see what Trump, who had during his campaign espoused a protectionist agenda and articulated his intention to "renegotiate" rel="noFollow" the North American Free Trade Agreement, or NAFTA, would do once he stepped into office.

pulse