The Bank of Canada continued to hold rates steady for the 2nd announcement in a row. 2017 saw two 1/4% increases and we may see more increases in 2018.
The hints by the Bank of Canada for no further increases until they see how the 1/2% rate increases in the summer impact the economy seem like they are still in play. The wait and see attitude displayed by the Bank of Canada may continue for a few more months, some even predicting no rate increase until April 2018 at the earliest.
While job increases in Canada have looked good in the most recent announcement, continued uncertainty about NAFTA, Donald Trump and Korea, and other global economies continue to weigh on any decision to increase rates.
Inflation is still being held in check but oil prices have been increasing a bit.
If you are traveling to any location this winter where the US currency is being used, you can expect to pay a bit more thanks to a poorer exchange rate as a result of this announcement.
Here is today’s announcement from the Bank of Canada:
The next Bank of Canada rate announcement is set for January 17, 2018.