Bank of Canada Maintains Overnight Rate Target at 1 ¾ Percent

The BOC expects growth in Canada to slow due to uncertainty associated with trade conflicts. Business investment and exports are likely to contract before expanding again in 2020 and 2021.

Government spending and lower borrowing rates are supporting domestic demand. The services sector remains robust and wage growth is picking up. Consumer spending has been choppy but is supported by solid income growth. Finally, housing activity is picking up in most markets. The BOC remains cautious due to global slowdowns in manufacturing and investments.