What unchanged Bank of Canada interest rate means for producers
The Bank of Canada decision to keep the policy interest rate unchanged at 1.75% is consistent with its neutral stance on interest rates in recent months, but it does recognize:
- There are economic headwinds, but they may lose steam second half of 2019/2020.
- At that time, it’s possible interest rates could climb.
- This is consistent with our early January Economic Outlooks.
The bottom line? Despite the current rate stability, it’s relevant for businesses to regularly monitor interest rates and financial markets for fluctuations. Check for our blog post next week to explore more about this topic.
Jean-Philippe (J.P.) Gervais is the Vice-President and Chief Economist at FCC. His insights help guide strategy and monitor risk throughout the corporation. In addition to acting as an FCC spokesperson on economic matters, J.P. provides commentary on the agri-food industry through videos and the FCC Economics blog.
Prior to joining FCC in 2010, J.P. was a professor of agricultural economics at North Carolina State University and Laval University. He’s also a past president of the Canadian Agricultural Economics Society (CAES). J.P. earned his Ph.D. in economics from Iowa State University in 1999.