Bank of Canada held its interest rate at unchanged today. This, despite a recent run of stronger-than-expected economic data. They have said that they believe the economy has not yet shown that it can maintain a steady and strong enough growth trajectory.
The bank also said that significant uncertainties still weighing on its outlook, including possible adverse effects of the U.S. economic agenda. Therefore it is holding the rate at 0.5 per cent.
Canadian growth did exceed the bank's expectations. Now it predicts real GDP to expand at an annual rate of 2.6 per cent in 2017. Up from its January forecast of 2.1 per cent. However, they mentioned that the economy is now expected to expand by 1.9 per cent in 2018, down from the bank's January forecast of 2.1 per cent, and to hit 1.8 per cent in 2019.
The future, however, looks murky. The statement said the bank's governing council was "mindful of the significant uncertainties'' faced by the Canadian economy.
There doesn't seem to have an increase lined up in the near future.
I believe that it may be a calmness before the "small storm", and it could be wise to take a look at your financial portfolio and see if your strategy still holds. Of course you can still be able to take advantage of your higher borrowing power at low interest rates.
Call me at 514-312-0130, and we can discuss together if there is anything to do for your financial well being.