North American stocks up, loonie down following Bank of Canada rate hike

18 January, 2018, 14:24 | Author: Sheri Evans
  • North American stocks up, loonie down following Bank of Canada rate hike

On the other hand, the bank predicted that Canada will see a small benefit from the recent USA tax changes thanks to increased demand.

So where do rates go from here?

How many years is your mortgage amortized for?

CDOR is a rate at which banks will lend to corporate clients using bankers' acceptances, a short-term credit instrument. Another hike, let alone two or three, is hardly baked in the cake.

Juncker says would like Britain to rejoin European Union after Brexit
In his speech, Mr Varadkar said it is hard to imagine the Good Friday Agreement being made without Ireland's membership of the EU.

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 Wednesday for a third time since last summer. Recent data show that labour market slack is being absorbed more quickly than anticipated.

The central bank estimates the economy grew 3% previous year, and is expected to expand 2.2% in 2018. "But in this case the rate hike itself was already reflected in market prices.so the real question on investors' minds was would the Bank of Canada provide more hawkish guidance about future rate hikes?" said Todd Mattina, a chief economist at Mackenzie Investments.

Underlying economic fundamentals at home and overseas have strengthened, and would otherwise suggest a strong pickup in business investment and exports, the bank said. We're looking for one further hike this year, likely early in Q3, and a further 50 bps in 2019. On the flip side savers can expect to earn more, too. It predicted Canada's high levels of household debt would amplify the effects of higher interest rates on consumption.

"They were really quick to highlight a lot of the positive and constructive developments that made them optimistic about the forecast and the outlook for the economy", Theoret said.

DOJ Appeals Judge's Ruling Stopping Trump From Ending DACA
The program, also known as DACA, provides protections and work permits to individuals who entered the USA illegally as children. The DOJ has appealed a lower court's decision in The Regents of the University of California and Janet Napolitano v.

The central bank's rate in turn affects rates that Canadians get from their retail banks for things like mortgages, credit lines, savings accounts and Guaranteed Investment Certificates (GIC). Barring another run of roaring data, we look for the Bank to hold off until possibly July before hiking again (depending, of course, on the fate of the NAFTA talks).

The bank also introduced into its projection the potential negative effects of recent US tax reforms, estimating they will take another 0.5 percent off Canadian investment by the end of next year.

"Although their investment intentions indicate plans to boost spending, respondents to the Business Outlook Survey are increasingly concerned about the ongoing NAFTA negotiations and rising protectionism more generally", the central bank said, referring to its quarterly survey.

The Bank of Canada said the unknowns of the NAFTA's renegotiation are continuing to weigh on its forecast and have created a drag on investment and exports.

Could Vikings OC Pat Shurmur bring QB Case Keenum to the Giants?
Several of the Arizona Cardinals' head coaching candidates remain busy with their teams in the National Football League playoffs. He later returned to Philadelphia as Chip Kelly's offensive coordinator before landing with the Vikings.

Exports have been weaker than anticipated, but are still expected to contribute a larger share of Canada's growth, the bank said.

Recommended:



Popular

Bengals fans donating money to Blake Bortles Foundation after Jags beat Steelers
Cincinnati sports radio host Mo Egger spearheaded the campaign, using his show and social media to coax donations from fans. He says he appreciates the contributions and adds that Bengals fans "should know their support will make a difference".

Iran Joins Russia, Turkey In Opposing US Plan To Guard Syrian Border
There are now some 2,000 USA troops in Syria, mainly training local forces to root out remaining extremist strongholds. The YPG and Turkish forces inside Syria have accused each other of shelling around the Afrin region in recent days.

Russian Federation condemns murder of Kosovo Serb politician
Ivanovic's death raises questions over global peacekeeping in the region, an area critics say is unable to govern organized crime. Prominent Kosovo Serb politician Oliver Ivanović was killed in a drive-by shooting outside his party headquarters Tuesday.

Toyota Avalon revealed | Bigger, sleeker and loads more tech
Avalon's LED taillights also implement laser ablation on Limited and Touring's units, as well as Dynamic Auxiliary Turn Signal. Powering the big sedan is either a 3.5-liter V6 or a 2.5-liter four-cylinder hybrid electric system.

Google unveils $30bn infrastructure investment plans
The HK-G, an acronym for Hong Kong-Guam, is another consortium cable interconnecting major subsea communication hubs in Asia. The Google Cloud Platform (GCP) region, which is now live in the country, will encourage more local firms to adopt Cloud.

Google Maps has gingerly returned to China after an eight year absence
Google's China domain, Google.cn, redirects traffic to its Hong Kong site, Google.com.hk. About 90 million users have signed up for it so far.

Sam's Club closing stores across the USA , including Morrisville location
Those employees will get the $1,000 bonus announced Thursday and 60 days of pay, as well as severance to those eligible. Walmart is also amping up its paid maternity leave to 10 weeks, and paid parental leave to six weeks.

Who is Pierre-Emerick Aubameyang and what will he bring to Arsenal?
Do not underestimate the influence of Head of Recruitment Sven Mislintat, who was hired from Dortmund earlier this season. He played a key role in bringing Aubameyang to Dortmund in 2013, ironically beating Arsenal to his signing.

Mercedes reveals all-new G-Class
Interior elbow room is up by 68mm in the front - handy if the Christmas period has left you feeling a little wider than you did. Mercedes also incorporated the new 12.3-inch Comand display that serves as both the gauge cluster and the infotainment display.

Former England striker Cyrille Regis dies
Ex-West Bromwich Albion striker Cyrille Regis has died suddenly of a heart attack at the age of 59, it has been announced. West Brom are due to unveil a 10-foot statue of Regis, Cunningham and Batson at the Hawthorns this season.