Bank of Canada Holds Rates Unchanged as Exports Start Outweighing Energy Sector

As widely expected, the Bank of Canada kept its overnight rate target at 0.50 percent on Weds. Dec. 2
Bank of Canada Holds Rates Unchanged as Exports Start Outweighing Energy Sector
Bank of Canada governor Stephen Poloz speaks during a press conference at the National Press Theatre in Ottawa on Oct. 21, 2015. On Dec. 2, the central bank left interest rates unchanged, as widely expected. The Canadian Press/Sean Kilpatrick
Rahul Vaidyanath
|Updated:

OTTAWA—As widely expected, the Bank of Canada kept its overnight rate target at 0.50 percent on Weds. Dec. 2, saying the economy is behaving as expected. A Bloomberg survey of 33 economists showed unanimity in expecting the BoC to leave rates unchanged.

The central bank has been emphasizing the economy is diversified and it expects the non-resource sectors to eventually outweigh the drag from the energy sector. Two rate cuts this year have been propping up the economy, however energy prices have edged lower recently.

The resource sector is still contending with lower prices for commodities.
— Bank of Canada
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
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