The Bank of Canada is seen in Ottawa on September 6, 2017. All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement. 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 today for a third time since last summer. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada to make interest rate decision today

Economists widely believe that based on the economic environment, it’s likely interest rates will rise today

All eyes will be on the Bank of Canada this morning as it makes its latest scheduled interest-rate announcement.

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 today for a third time since last summer.

Many note that Poloz has indicated that interest rate decisions will be data dependent.

Related: Bank of Canada raises interest rate to 1 per cent

In addition to a stronger-than-expected jobs report released earlier this month, the central bank’s Business Outlook Survey revealed that sentiment remained positive during the final quarter of 2017.

But many economists say a rate hike today doesn’t mean the Bank of Canada is poised to start a rapid tightening cycle.

Given high household debt levels, the unknown impact of tighter stress tests for uninsured mortgages that came into effect this year and uncertainty surrounding NAFTA renegotiations, the bank must be cautious about how quickly it raises rates in order to avoid derailing the economy.

Scotiabank Economics is forecasting 75 basis points of gradual tightening this year spread out throughout 2018, while TD Economics expects a gradual pace of tightening over the next two years of about 25 basis points every six months.

RBC Economics Research says it expects the Bank of Canada to raise the overnight rate by 25 basis points to 1.25 per cent today.

Related: Debt-to-household-income ratio rises in third quarter

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Five young goats go missing in Lantzville

Goats escape through hole in fence at property on Sywash Ridge Road

Foul play not suspected in man’s death in Chemainus

Long attempt made to revive unidentified person on the dock

Generals host camp in Parksville

Main camp attracts 45 players vying for sport in this season’s roster

Parksville-area watchdogs say drivers getting message on cell use

Other distracted driving habits still a problem

Social media, digital photography allow millennials to flock to birdwatching

More young people are flocking to birdwatching than ever, aided by social media, digital photography

Vehicle fire on the Coquihalla

Heavy congestion in north bound lanes

Prime minister greeted by B.C. premier as cabinet retreat begins

PM Justin Trudeau and Premier John Horgan meet in advance of federal cabinet meetings in Nanaimo

Are your kids anxious about going back to school?

BC Children’s Hospital offers tips to help your children be mindful and reduce stress

New trial ordered for James Oler in B.C. child bride case

Meanwhile, appeal court dismisses Emily Blackmore’s appeal of guilty verdict

This trash heap in Vancouver could be yours for $3.9 million

Sitting atop 6,000 square feet, the home was built in 1912, later destroyed by fire

Team Canada’s next game postponed at Little League World Series

They’re back in action on Wednesday against Peurto Rico

Ex-Trump lawyer Cohen pleads guilty in hush-money scheme

Said he and Trump arranged payment to porn star Stormy Daniels and a former Playboy model to influence the election

Former Trump aide Paul Manafort found guilty of eight charges

A mistrial has been declared for the other 10 charges against him

Most Read