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Bank of Canada set to reveal latest take on economic outlook

The Bank of Canada makes its latest interest rate announcement today along with its updated forecast for the economy.

The central bank is widely expected to keep its key interest rate target on hold at 0.5 per cent, but economists and policy-makers will be scrutinizing its outlook for the economy.

The economy pulled back in the second quarter due in large part to the wildfires in Alberta that shut down production in the oilsands.

It’s expected to bounce back in the third quarter, but just how much of that momentum will be carried through into the fourth quarter is the question.

In its monetary policy report in July, the Bank of Canada predicted economic growth to rebound to a 3.5-per-cent annual pace in the third quarter due to oil production and reconstruction efforts in Alberta’s oilsands region.

Growth for 2016 as a whole was forecast at 1.3 per cent.

Article source: http://www.cbc.ca/news/business/bank-of-canada-interest-rates-1.3811459?cmp=rss