19 Jul

Mark Carney Signals Rate Hike Coming

General

Posted by: Rabinder Dhillon

Bank of Canada Governor Mark Carney held his benchmark interest rate at 1 per cent Tuesday, pointing to global threats on both sides of the Atlantic and weaker-than-expected exports, while also signalling that the domestic economy’s strength is moving him closer to higher rates.

In explaining the decision to leave borrowing costs alone for a seventh consecutive meeting, as expected, the central bank said that “widespread concerns” over sovereign debt problems have “increased risk aversion and volatility in financial markets.” However, Mr. Carney and his rate-setting panel said financial conditions in Canada “remain very stimulative” and the growth of private credit is strong despite global developments.

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