• News
  • Global News

Bank Of Canada Raises Interest Rates To 1.00%, Canadian Dollar Spikes Stronger

Bank Of Canada Raises Interest Rates To 1.00%, Canadian Dollar Spikes Stronger

The overnight rate was raised by 25 basis points to 1.0%, versus economists' expectations that it would be kept unchanged. Then, it was the first increase in the key rate since 2010.

Masrani declined to quantify the anticipated boost to the bank's revenues from the latest interest rate increase.

To that point, the bank described the economic advancements as becoming "broadly-based" and "self-sustaining".

The bank's rate has returned to where it was at the start of 2015, when the central bank started slashing rates to stimulate a Canadian economy that had been waylaid by the oil price crash. It also cited more "widespread strength" in business investment and exports, and "stronger-than- expected indicators of growth" globally.

"The Bank of Canada took the fast lane in returning rates to 1.0%, hiking 25bp when most were expecting a hold until October". In the USA, where the bank has a large deposit base, the four rate hikes handed down by the Fed has been a "tailwind", he added.

Meanwhile, Statistics Canada reports that Canada's trade deficit in July shrank to $3.04 billion, thanks to a strong Canadian dollar that cut the value of imports (-2.3%) and depressed exports (-1.1%).

CIBC economist Avery Shenfeld argued that the timetable for the hike is much tighter, as the BoC could be expected to increase rates this week.

USA blasts deal that removed IS from Lebanon-Syria border
But anger over the transfer deal prompted the US-led coalition to launch airstrikes on Wednesday to block the convoy. Lebanon's Hezbollah has been a close ally of Syrian President Bashar al-Assad throughout Syria's six-year war.

What that all means, of course, is that anyone who's overextended on credit - and has been relying on historically low interest rates to keep afloat - could very quickly be in trouble.

Canada's currency climbed as much as 1.8 per cent after the decision, reaching $C1.2146 against its USA counterpart, the highest intraday level since June 2015, and extending the gain this year to 10 per cent.

"Given the stronger-than-expected economic performance, [the bank] judges that the removal of some of the considerable monetary policy stimulus is warranted". Any adjustment will eventually be reflected in the price of loans to consumers and businesses, while having a direct influence on the variable-rate mortgage loans and the exchange rate of the canadian dollar.

As is often the verbiage of central banks, no future moves are set in stone, as they will be determined by analysis of economic data and other developments.

"There remains some excess capacity in Canada's labor market, and wage and price pressures are still more subdued than historical relationship would suggest", according to the statement.

The bank said there remains "significant geopolitical risks and uncertainties" around worldwide trade and fiscal policies that have weakened the USA dollar.

"Particular focus will be given to the evolution of the economy's potential, and to labour market conditions".

Leave Your Comment

Leave Your Comment


Latest News

  • Florida State QB Francois out for season

    Florida State QB Francois out for season

    Less than a minute later, the Tide took back the ball again when Levi Wallace picked off Francois' pass at the FSU 42-yard line. On the same play that Florida State was called for pass interference, Alabama's sideline was hit with a delay of game penalty.
    U.S.  economic growth revised up to 3 per cent in Q2

    U.S. economic growth revised up to 3 per cent in Q2

    Consumer spending was the main engine for the strength in the second quarter, rising a revised 3.3% in the second quarter. The GDP and PCE price deflators were little changed, increasing by 1.0% and 0.9% annualized in the second quarter.
    USA  test successfully intercepts ballistic missile

    USA test successfully intercepts ballistic missile

    Earlier Tuesday, North Korea fired a ballistic missile over Japan, a close USA ally, that landed in the Pacific Ocean. In June, the John Paul Jones failed to shoot down its target missile in a similar test off Hawaii.
  • National Guard Deploying to Texas for Hurricane Relief

    National Guard Deploying to Texas for Hurricane Relief

    The members of the 179th Infantry Regiment and the 45th Infantry Brigade Combat Team were packed and ready to go to Austin. Charles Christianson, a Guard helicopter pilot from Russellville, deployed to Sugar Land, Texas, on Tuesday.
    RBI data proves Prime Minister Modi's demonetisation failed on all fronts

    RBI data proves Prime Minister Modi's demonetisation failed on all fronts

    In the Delhi markets, the Rs 1,000 currency note was sold for Rs 700, and the Rs 500 note was sold for Rs 325-350. But it did not, and in this process every citizens of the country - rich or poor, rural or urban - was affected.
    LG rolls out new flagship smartphone

    LG rolls out new flagship smartphone

    She also talks about Google's ARCore SDK which is now available only on Google Pixel and the Samsung Galaxy S8 smartphone. The device is also certified for IP68 water and dust resistance as well as the Military grade MIL-STD-810G certificate.
  • N Korea could nuke US, Europe 'within months'

    N Korea could nuke US, Europe 'within months'

    The U.S. territory of Guam is home to key military bases and strategic long-range bombers that North Korea finds threatening. On Tuesday, North Korea provoked worldwide alarm after it fired a mid-range missile over the Japanese island of Hokkaido.
    It's Your Last Chance to Comment on Net Neutrality Plan

    It's Your Last Chance to Comment on Net Neutrality Plan

    Pai has said the regulations stifle corporate innovation and investment and are not necessary to guaranteeing an "open internet". The FCC , led by Republican chairman Ajit Pai, voted in May to start the formal process of unwinding the 2015 rules.
    UN Secretary General to attend Israeli startup event

    UN Secretary General to attend Israeli startup event

    It is the first time Guterres has visited the West Bank and the Gaza Strip since he took over from Ban Ki-moon on January 1. He has also said Arab states in the Persian Gulf that were once enemies are now cultivating wider ties with Israel.
  • Ontario gas prices headed for major spike in wake of Harvey

    Ontario gas prices headed for major spike in wake of Harvey

    Those prices are likely here to stay for several weeks, says Dan McTeague, a senior analyst with GasBuddy.com. In Saskatoon, gas prices on average were at $1.02 Thursday and 96 cents last week.
    Trump Plans to Donates $1M to Harvey Victims

    Trump Plans to Donates $1M to Harvey Victims

    President Trump and first lady Melania Trump step off Air Force One after arriving in Corpus Christi, Texas, earlier this week. The announcement comes as Trump is planning a return visit Saturday to Texas, which was hardest hit by the deadly storm.
    Look what Taylor Swift did

    Look what Taylor Swift did

    REUTERS/Carlo AllegriTaylor Swift during one of her performances at the 2014 New Year's Eve celebration in Times Square, New York. The 27-year-old singer dropped the much-anticipated song late Thursday to streaming platforms and iTunes.
  • BRICS Summit in Xiamen

    BRICS Summit in Xiamen

    The visit is important as India's eastern neighbour is a vital part of its Act East and neighbourhood first policy. Earlier, China has raised concerns about India raising the issue of terrorism at the BRICS Summit.
    Kejriwal terms Ghazipur collapse a man-made disaster, blames BJP-ruled MCD

    Kejriwal terms Ghazipur collapse a man-made disaster, blames BJP-ruled MCD

    The massive 50-meters tall landfill at Ghazipur is one among the four major garbage dumping spots in Delhi. A crowd gathered to watch, among them residents who have complained about the dump for years.
    Iran Slaps Down Haley: No One Sees Military Sites Without Ayatollah's Permission

    Iran Slaps Down Haley: No One Sees Military Sites Without Ayatollah's Permission

    Bunn dismissed any potential influence President Donald Trump might try to exercise in the United Nations with Haley's request. The Iran-US bilateral meetings were largely responsible for breaking the impasse over Iran's nuclear program.
  • Rafael Nadal into US Open quarterfinals with win over Alexandr Dolgopolov

    Rafael Nadal into US Open quarterfinals with win over Alexandr Dolgopolov

    Open for the first time, while Svitolina's chance of obtaining the No. 1 world ranking following this tournament disappeared. KAROLINA PLISKOVA finally played like the world No 1 and proved she could claim her first Grand Slam title in NY .
    5000-acre La Tuna fire largest in Los Angeles city history

    5000-acre La Tuna fire largest in Los Angeles city history

    No estimated acreage was available, but LAFD officials said the blaze could reach 2,000 acres now that it has jumped the freeway. At a certain point, firefighters were dealing with 40 miles per hour winds and flames 100 feet in height, according to the L.A.
    Donald Trump Snubs Gary Cohn in Tax Policy Speech; Praises Daughter Ivanka

    Donald Trump Snubs Gary Cohn in Tax Policy Speech; Praises Daughter Ivanka

    And the Democrats have shown no willingness to support a tax overhaul they deem to benefit the wealthy disproportionately. The president has already put pressure on McCaskill, tweeting Sunday that the senator stands opposed to "big tax cuts".

Breaking News



Recommended

Police say missing Temple University student's body was transported in a Lyft

No attorney was listed for Hupperterz, and his preliminary hearing is scheduled for September 20, according to court records. A Souderton Area High School graduate, she recently transferred to Temple from Montgomery County Community College.

Cameroon coach Hugo Broos admits World Cup hopes are gone

As if that was not enough, Mikel Obi , with a corner kick taken by Victor Moses , slipped in the second goal at the 41 minute. They visit Cameroon on Monday, with a draw putting them in position to start preparing for the 2018 World Cup finals.

Xiaomi MI Mix 2 enters mass production confirms CEO, teases retail box

Earlier, in May it was reported that Snapdragon 845 was in development and is expected to be built on a new 7nm process. However there are chances that Xiaomi would implement it considering that is what most other smartphones are offering.

The Samsung Galaxy J7+ goes official on Samsung Thailand's site

The 16 MP front-facing camera with F/1.9 aperture paired with its own single tone LED flash can also take some great photographs. The Galaxy C8 will reportedly feature the fingerprint sensor on front, on top of the Home button like the Galaxy S7 and S6.

Watchdog: Iran complying with nuclear deal limits

However, the IAEA officials said they would not help the Trump administration make a false case for abandoning the agreement. Although Russia, China, Britain, France and Germany also signed on to the pact, Iran and the U.S. were the key players.

Bangladesh joins Windies in pulling off shock win

Warner instantly reviewed Aleem Dar's decision but replays confirmed it was hitting middle and leg. A brilliant 112 from opener David Warner gave Australia hope, before it all evaporated in Dhaka .

The iPhone 8 reportedly swaps the home button for gesture controls

According to Gurman, Apple's iPhone 8 has a "taller screen" than those you'd find in the iPhone 7s and iPhone 7s Plus . That means that PearlID can be used to unlock the iPhone 8 , authorize Apple Pay purchases, and access secure apps .

Astros, Rangers to play 3 in St. Petersburg

The Astros will now be playing 19 straight games away from Houston which could present a challenge for them down the stretch. The game was originally scheduled for NRG Stadium, which is not damaged as yet, but there is severe flooding nearby.

Democrats prepare to fight Trump's transgender military ban

Transgender soldiers serving in the United States military will keep their jobs, at least for now. Secretary Mattis did not make a decision to "buy time" or to "freeze" the current policy.

Trump's transgender military ban challenged by civil liberties groups

A third lawsuit was filed earlier this month by the National Center for Lesbian Rights (NCLR) and GLBTQ Advocates & Defenders (GLAD) in federal court in the District of Columbia.