Highlights of the Bank of Canada interest rate decision on October 30, 2019:
- Says resilience of Canadian economy 'will be increasingly tested' as trade conflicts and uncertainty persist
- H2 growth expected to slow to a rate below potential due to trade, weak energy sector and unwinding of of temporary factors
- Boosts 2019 forecast to 1.5% from 1.3%
- Cuts 2020 to 1.7% from 1.9% and 2021 to 1.8% from 2.0%
- Global growth expected to be slowest this year since financial crisis, but forecast to rise next year
- Will pay close attention to sources of resilience in Canadian economy like consumer spending and housing activity.
- Trade risks two-sided but tilted to downside
- Consumer spending choppy but will be supported by income growth
- Business investment and exports likely to contract in H2 before expanding again in 2020 and 2021
- CPI expected to remain close to target over the projection horizon
- Full text of the monetary policy report
USD/CAD is immediately higher on the headlines.
BOC Governor Poloz and senior deputy Wilkins will hold a news conference at 11:15 am ET (1515 GMT).
Here are the BOC forecasts for global growth:
