Interest Rates Rise On ‘Resilient’ Canadian Economy
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With the Canadian economy continuing to chug along nicely, the Bank of Canada did what almost everyone expected and raised interest rates.
On Wednesday, the Bank announced it was hiking interest rates a quarter point, up to 1.75.
“The global economic outlook remains solid … and the Canadian economy continues to operate close to its potential,” said Carolyn A. Wilkins, Senior Deputy Governor of the Bank of Canada, in the Monetary Policy Report for October 2018.
Wilkins also cited a robust American economy, the newly-signed free trade deal with the U.S. and Mexico, solid unemployment numbers and a stable housing market as positive signs that the economy is “resilient” enough and Canadian households can function with higher rates.