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Bank of Canada stands firm behind mixed economic signals

Dec 05, 2018

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Video: Bank of Canada stands firm behind mixed economic signals

J.P. Gervais on what he expects rates will do in 2019 based on the December 5 interest rate announcement from the Bank of Canada (BOC).

Economy operates near capacity, yet inflation remains in line with the BOC target
Exports growing, but trade tensions persist
Business investment remains muted, and could pick up following recent tax incentives

The bottom line? Expect another rate increase in the early part of 2019. The BoC may be able to wait beyond the January announcement to get a better understanding of various economic indicators.

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