The Bank of Canada is seen in Ottawa on September 6, 2017. All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement. Economists widely believe that based on the economic environment, it’s likely that governor Stephen Poloz will raise the central bank’s benchmark interest rate today for a third time since last summer. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada to make interest rate decision today

Economists widely believe that based on the economic environment, it’s likely interest rates will rise today

All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement.

Economists widely believe that based on the economic environment, it’s likely that governor Stephen Poloz will raise the central bank’s benchmark interest rate today for a third time since last summer.

Many note that Poloz has indicated that interest rate decisions will be data dependent.

Related: Bank of Canada raises interest rate to 1 per cent

In addition to a stronger-than-expected jobs report released earlier this month, the central bank’s Business Outlook Survey revealed that sentiment remained positive during the final quarter of 2017.

But many economists say a rate hike today doesn’t mean the Bank of Canada is poised to start a rapid tightening cycle.

Given high household debt levels, the unknown impact of tighter stress tests for uninsured mortgages that came into effect this year and uncertainty surrounding NAFTA renegotiations, the bank must be cautious about how quickly it raises rates in order to avoid derailing the economy.

Scotiabank Economics is forecasting 75 basis points of gradual tightening this year spread out throughout 2018, while TD Economics expects a gradual pace of tightening over the next two years of about 25 basis points every six months.

RBC Economics Research says it expects the Bank of Canada to raise the overnight rate by 25 basis points to 1.25 per cent today.

Related: Debt-to-household-income ratio rises in third quarter

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

Colwood mayor pitches ferry as commuter alternative

Mayor Rob Martin says different modes of transportation need to be considered

Emerald Gloves boxing brings fights to Langford

Langford’s Matt Daniels dropped weight for debut

Bouquet sales support big dreams in Greater Victoria

Country Grocer features holiday bouquets for Help Fill a Dream

U.S. mayor and dying dog’s roadtrip to Victoria goes viral

First vacation in three years came a month after blood cancer diagnosis

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Greater Victoria holiday craft fair roundup for Nov. 16 to 18

Check off all of the items on your shopping list at these great events

Greater Victoria Crime Stoppers wanted list for the week of Nov. 14

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

Port Alberni convenience store robbed

Police still searching for suspect

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Saskatchewan college honours memory of Humboldt Broncos coach

Darcy Haugan wore jersey No. 22 when he was a star player with the Briercrest College Clippers

Most Read