Dr. Sherry Cooper weighs in on Wednesdays Bank of Canada announcement to hold steady on interest rates.
Of major consideration are the new tariffs announced by Donald Trump on steel and aluminum that may have a profound affect on the Canadian economy, especially when we are in the middle of NAFTA negotiations.
Housing is another factor considered in the decision as the full affects of tightened mortgage rules are still becoming known. The economy is being monitored. There has been a deceleration of household debt over 3 months which is good for the economy overall but not as good for the retail industry as people are buying less.
The Bank of Canada acknowledges that interest rates will need to rise given the overall economic outlook however, accommodations are being made to keep the economy on track.