'There are worries ahead': Experts react to Bank of Canada's rate hike

The Bank of Canada raised its benchmark interest rate by a quarter percentage point to 1.5 per cent Wednesday, even as the economy faces fallout from widening trade uncertainty.

The July projection also incorporates the estimated impact of tariffs on steel and aluminum recently imposed by the United States, as well as the countermeasures enacted by Canada. It was the bank's fourth increase over the last 12 months and the first time the rate has been this high since December 2008.

However, the central bank said it would take a gradual approach to future rate increases amid mounting tensions over trade with the USA, among other uncertainties.

The Bank Rate is correspondingly 1 ¾ per cent and the deposit rate is 1 ¼ per cent. In particular, the Bank is monitoring the economy's adjustment to higher interest rates and the evolution of capacity and wage pressures, as well as the response of companies and consumers to trade actions.

Roger Federer loses epic stunner at Wimbledon
Anderson then served it out, ending things with a 128 miles per hour service victor , and raised both arms overhead. The tennis player and cricketer know each other personally and share great mutual respect.

Nawaz Sharif’s son-in-law arrested following conviction in corruption case
The PML-N's first rally is expected to be held on Friday in which Nawaz Sharif is expected to announce the date of his return. NAB also asked Pemra to provide footage of the rally to ascertain the identity of the culprits.

Royal family watch spectacular RAF flypast to mark its centenary
They'll end their day and their official visit with a trip to the DogPatch Labs, a co-working space for technology start-ups. Harry and Meghan's engagements will include official meetings with Taoiseach Leo Varadkar and President Michael D Higgins.

The bank's relatively sanguine view of the trade risk boosted the Canadian dollar to its strongest in almost four weeks, and economists said they expected the central bank to hike again by year end.

"I thought this was about as neutral a statement as you possibly can put into the marketplace given that you have hiked rates.We're pretty much in uncharted territory in the sense of we've never been this indebted, rates have never really been this low, and [Poloz] is trying to reverse the ship without turning the ship over".

The bank, however, noted in its report that despite "healthy" labour market conditions, employment growth and average hours worked have slowed down compared to last year's surge.

The country's inflation rate is expected to rise as high as 2.5% - above the 2% mid-point of the bank's target range - due to temporary factors such as higher gasoline prices. CPI inflation is expected to edge up further to about 2.5 per cent before settling back to 2 per cent by the second half of 2019.

Related:

Comments

Latest news

Houston model bitten by shark while swimming in the Bahamas
She began floating in the water and everything seemed fine, but then one of the animals bit her and dragged her underwater. An Instagram model has been bitten by a shark during an impromptu photo shoot.

Cardi B announces birth of daughter in Instagram post
More details on the lawsuit between Cardi B and her ex-manager seem to be coming through every week. Cardi B , 25, and Offset , 26, have been together since a chance meeting in NY in February 2017.

Wimbledon 2018 -- Men's quarterfinal matches
World number one Nadal faces a tricky test against power-hitter del Potro in his first Wimbledon quarter-final since 2011. The other quarter-final features American John Isner and Canadian former runner-up Milos Raonic .

UK Prime Minister Theresa May fights to stop Cabinet exodus over Brexit
Mr Wilson praised the American President for his firmness with European companies and EU leaders on matters of trade and security. May named one of her most loyal ministers, Jeremy Hunt, to replace Johnson in the job of Britain's top diplomat.

USA and China Enter into Trade War
Pacific Northwest, and are likely to get sent elsewhere as exporters scramble to avoid paying the tariff, a U.S. trader said. Asian markets appear to have taken in stride the USA move to raise tariffs on billions of dollars of Chinese products.

Michael Ondaatje's English Patient wins Booker Prize's 50th anniversary award
Two of the five books nominated were published by Bloomsbury, which will be hoping for related sales boost. The other shortlisted books for the Golden Man Booker were V.S.

Tips and predictions for Croatia vs England
But he is already experimenting with different options. "[Croatia] will be tough but I think we're going to get through". The manner of that performance instantly won over the home crowd and gave them a reason to cheer their team.

Cardi B countersuing her ex-manager for $15M
In April Leonard sued her for $10m , claiming to have "played an integral role in developing her music career and public image". This apparently included her relationships as she claims Shaft would tell her "who she should and should not see romantically".

Champion Russell Knox eyes Ryder Cup | Ireland
Scotland's Russell Knox beat New Zealand's Ryan Fox on the first hole of a play-off to win the Irish Open . Paul Dunne and Graeme McDowell carded rounds of 71 as they finished on even par for the tournament.

Na eases to five-shot PGA Tour victory
Tag Ridings (Arkansas Razorbacks) tied for 27th at 11 under, while Sebastian Cappelen (Razorbacks) tied for 41st at 8 under. Kraft said he struggled judging the speed of his putts. "It s nice to get that second trophy". "Hopefully I get this done".

Man harasses woman over Puerto Rico shirt, says it’s ‘un-American’
Speaking to CNN's Erin Burnett on Tuesday, Puerto Rico's governor said he was "appalled and disgusted" by the video. Irizarry had rented a forest preserve pavilion for a birthday party and was issued a permit for the event.

Leaked Galaxy Tab S4 render reveals the new S Pen
A Korean news site called The Bell and Ice Universe have referred to the alleged new S10s as Beyond 0, Beyond 1 and Beyond 2. In any case, I imagine Samsung is keeping its big redesigns for next year's Note 10, because 10 is a special number and all.

Starbucks is done with plastic straws
Starbucks is the latest corporate chain promising to ditch plastic straws because of the environmental threat to oceans. The new lids are already being used in more than 8,000 stores in North America for beverages such as draft nitro.

World's ugliest dog dies weeks after winning title
Zsa Zsa , the floppy-tongued bulldog from Minnesota who won the World's Ugliest Dog contest just last month, has reportedly died. Zsa Zsa was about nine years old when she passed away, which is about the life expectancy for the breed.

Woolworths recalls savoury rice after listeria outbreak in Europe
It is feared they contained the deadly listeria monocytogenes - with 47 people being affected since 2015, nine of which have died. Woolworths said the recall is purely a precautionary measure, on the global instruction of the Hungarian Food Safety Agency.

Other news