Another BoC interest rate cut? Not likely, say experts

With Bank of Canada’s next interest rate announcement set for tomorrow, Canadians are buzzing with predictions about whether BoC will lower its overnight interest rate again following its surprise announcement earlier this year. While experts had predicted another rate cut as of last month, it’s now looking like less of a possibility. In fact, Moneysense is reporting that BoC governor Stephen Poloz said the January rate cut has given the bank time to determine the best way to bring economic stability back to Canada. Poloz also said policy-makers are gaining confidence that the economy will be more stable by the end of this year instead of 2017 as originally predicted.

On Monday, as Canadians awaited an update from BoC, the Canadian dollar ended at 79.78 cents, losing 0.20 of a cent, according to The Globe and Mail. And on Saturday, China’s central bank announced a quarter point cut to its key rate. At 5.35 per cent, China’s key rate is now at a five-year low. CBC reports that Chinese officials are concerned about slower economic growth. Experts predict that the drop in Canada’s interest rates and currency may attract more foreign investors to the Canadian real estate market. Canadian jobs data for February will be released on March 13, and we’ll be watching for updates on interest rates later this week and year.

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