Central bank points to stronger economy; market sees rate hike drawing closer
OTTAWA — The Bank of Canada is encouraged by a broadening of economic strength, which includes gains across 70 per cent of industries, a top official said Monday, in what was widely seen as a “hawkish” speech from the country’s central bank.
Senior deputy governor Carolyn Wilkins said the gains are something Canada hasn’t seen since before the oil-price collapse nearly three years ago. Analysts said these and other comments suggest the central bank is beginning to assess when, not if, the bank might introduce its first rate increase in nearly seven years.
For nearly two years, the rate has been locked at the very low level of 0.5 per cent as a way to help lift the economy.
“As growth continues and, ideally, broadens further, (the bank’s) governing council will be assessing whether all the considerable monetary policy stimulus presently in place is still required,” Wilkins said in a speech delivered at the Asper School of Business in Winnipeg.