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

Woodyatt seeks help to pursue physics education in London

Ballenas Secondary product gets accepted to prestigious university in United Kingdom

Solar system spending, asbestos removal in SD69 plan

Green house gas emission report received at May 22 board meeting

Gr. 7s learn about digital safety, health, consent at con in Parksville

SD69 hosts first Health and Wellness Conference for students headed to high school

Qualicum Beach east village plans take shape

Staff moving forward with east village concept

Three-for-one at Parksville studio for tour

Local artists participating in Central Island Studio Tour May 26-27

VIDEO: Meet some of the Vancouver Island Tribute Festival performers

The NEWS speaks with Elvis, Liberace tribute artists and others before they go on parade

Passersby help rescue occupants of home as fire breaks out in Courtenay

Coffee run turns into fire rescue for pair of men

Giant beer tanks arrive in new B.C. home city

Molson Coors tanks finish river journey and move to overland trip in Chilliwack

VIDEO: Pipeline supporters rally across B.C.

Five simultaneous events organized by month-old Suits and Boots lobby group

VIDEO: B.C. woman praises burn fund after boat explosion in 1978

White Rock woman was 16 years old when she was left with second- and third-degree burns

B.C.’s Ryan Craig, Vegas Golden Knights chase history

Local product behind bench for expansion team’s incredible championship run

CP rail workers give strike notice

Employees could walk out as early as Tuesday at 7 p.m. PT

RCMP investigating after gunshots fired in Courtenay

Comox Valley RCMP officers are investigating after gunshots rang out in Courtenay… Continue reading

Vancouver Island wife brings husband back to life with CPR, thanks to 911 dispatcher

‘The dispatcher literally taught me CPR over the phone’

Most Read