July 10, 2019

Jul 11 02:07 2019 Print This Article

The BoC maintained the policy rate:

The Bank of Canada today maintained its target for the overnight rate at 1 ¾ percent. The Bank Rate is correspondingly 2 percent and the deposit rate is 1 ½ percent.

Evidence has been accumulating that ongoing trade tensions are having a material effect on the global economic outlook. The Bank had already incorporated such negative effects in previous Monetary Policy Reports (MPR) and in this forecast has made further adjustments in light of weaker sentiment and activity in major economies. Trade conflicts between the United States and China, in particular, are curbing manufacturing activity and business investment and pushing down commodity prices.

Policy is responding to the slowdown: central banks in the US and Europe have signalled their readiness to provide more accommodative monetary policy and further policy stimulus has been implemented in China. In this context, global financial conditions have eased substantially. The Bank now expects global GDP to grow by 3 percent in 2019 and to strengthen to around 3 ¼ percent in 2020 and 2021, with the US slowing to a pace near its potential. Escalation of trade conflicts remains the biggest downside risk to the global and Canadian outlooks.

Read More

About Article Author

PrefBlog

PrefBlog is presented as a public service by Hymas Investment Management Inc., Manager / Trustee of Malachite Aggressive Preferred Fundand publisher of PrefLetter, a monthly newsletter directed towards long term buy-and-hold retail investors. James Hymas, president of Hymas Investment Management Inc, with years of experience designing quantitative investment technology and applying this technology to conservative portfolios, seeks to provide institutions and retail investors with the information and advice necessary to produce top quartile returns in the preferred share market without the assumption of excess risk.

Related Items

December 13, 2019

I had a stray thought today regarding the HSE.PR.C reset fiasco … if they calculated the rate in good faith as of November 29, why didn’t they announce the rate on November 29? But now it’s time for PrefLetter! HIMIPref™ Preferred IndicesThese values reflect the December 2008 revision of ...

Schedule for Week of December 15, 2019

The key economic reports this week are November Housing Starts, Existing Home Sales, the 3rd estimate of Q3 GDP, and November Personal income and outlays.For manufacturing, November Industrial Production, and the December New York, Philly and Kansas City Fed surveys, will be released this week.----- ...

HSE.PR.C : Convert or Hold?

It will be recalled that HSE.PR.C will reset at 4.689% effective December 31, 2019. HSE.PR.C is a FixedReset, 4.50%+313, that commenced trading 2014-12-9 after being announced 2014-12-1. The initial reset rate announcement was quickly determined to be anomalous and eventually corrected. The issue i ...

OANDA Market Insights – Episode 95 (Video)

OANDA Senior Market Analyst Craig Erlam previews the week’s business and market news with Jazz FM Business Breakfast presenter Jonny Hart. On this week’s podcast, Jonny and Craig reflect on another remarkable election in the UK, progress towards a phase one US-China trade deal and preview the ...

The American Retirement Nightmare

Megan Leonhardt of CNBC reports that according to one economist, the system is ‘flawed’ when most Americans have little or no retirement savings:It’s no secret that Americans are falling short when it comes to saving enough for retirement. But as a new report shows, many are disastrously unpr ...

Week Ahead – Phase-one trade deal and UK election aftermath

The US dollar remains at a critical juncture as Fed policy will be on hold for the foreseeable future and as we start to see an economic rebound come out of Europe. The world’s largest and strongest economy is likely to start to see economic growth slow in the fourth quarter, further cementing t ...

Smells like teen spirit

  By Guest Blogger Doug Rowat . Thank god my kids aren’t yet teenagers; however, my seven-year-old daughter is already asking for a cellphone, so I’m getting a sense of what’s in store for me. I’m probably doomed. So, for those of you who do have teenagers I won’t presume to offer advi ...

Cher Bill

The ink was barely dry on young Scheer’s take-this-job-&-shove-it letter when news on what the T2 Libs have in store for this confused and snowy land emerged. Finance guy Bill Morneau’s ‘mandate letter’ was released Friday – essentially the instructions given to the main economic ministe ...

Don’t Fear the Digital Future of the Mortgage Industry

There’s no denying the mortgage industry—like many others—is in the midst of a digital transformation. Depending on your perspective, that’s something that can either be feared, or embraced as a new opportunity. The fear, of course, is that as the industry moves towards greater automation of ...

It’s Cheaper To Buy A Tesla Than A Mac

It is now cheaper to buy a Tesla than it is to buy a Mac Pro — at least, a loaded Mac. We now live in an era where it’s… The post It’s Cheaper To Buy A Tesla Than A Mac appeared first on EV Obsession. ...

Canada’s best Mastercard credit cards 2020

As one of the top credit card companies in the world, Mastercard is both extremely popular and also nearly universally accepted. For those already banking at BMO Bank of Montreal, a major Canadian bank that associates with Mastercard, these cards may offer all the perks you’re after, along with o ...

How to Keep Your Financial Resolutions this Year

One of the all-time most common New Year’s Resolutions is to save more and spend less. But about 80 percent of New Year’s resolutions fail by mid-February. You’ve been there, done that. This year, you can make it happen. The key? Make a plan and then enlist technology to help keep it on track ...

Why One Activist Is Giving Milk, Cookies & Cannabis to the Homeless

In the cold Canadian winter of 2010, a Toronto-based activist known as Amy Anonymous began handing out bags of milk, cookies, warm clothes and (for those who want it) cannabis, to help the city’s homeless. Nine years later, and with cannabis now legal in Canada, she’s still going at it. The act ...

AZP Upgraded to P-4(low) by S&P

Standard & Poor’s has announced: On Dec. 13, 2019, S&P Global Ratings raised its issuer credit rating on Atlantic Power Corp. (APC) to ‘BB-‘ from ‘B+’ based on its improving leverage profile. At the same time, S&P Global Ratings raised APLP Holdings Limited Partnership’s issue-level ...