TELETRADER News
4/13/2016, 3:59 PM (Source: TeleTrader)
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Bank of Canada leaves key interest rate at 0.5%

The Bank of Canada (BoC) decided not to raise basic overnight interest rate of 0.5%. " The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent," said the statement of the central bank.

The national economy is projected to grow by 1.7% in 2016, according to BoC. Global economic growth is estimated to strengthen gradually from roughly 3% in 2016 to 3.5% in 2017-18, which a weaker outlook than the Bank of Canada had projected in its January Monetary Policy Report (MPR).

The national economy is projected to grow by 1.7% in 2016, which is higher than previously estimated expansion of 1.4%. Bank of Canada cited rather strong growth in the first quarter. Global economic growth is estimated to strengthen gradually from roughly 3% in 2016 to 3.5% in 2017-18, which a weaker outlook than the Bank of Canada had projected in its January Monetary Policy Report (MPR).

The economy of the United States should regain momentum after a sluggish start in 2016, " but with a lower profile and a composition that is less favourable for Canadian exports," said the BoC Monetary Policy report for April 2016.

Prices of oil and other commodities were at higher level than the bank had foreseen in January, but were still remain well below historical averages, which would result in even less investments into very important energy sector.

The stock market in Toronto was trading higher, as the S&P/TSX index rose 0.33% to 13,626 points by 4:17 p.m. CET (10:14 a.m. EDT) with majority of sectors gaining. Mining sector jumped 3.88%, with First Quantum rising 5.98% and Hudbay Minerals following up 5.94%. Altius Minerals was main decliner, down 7.32%.

The Canadian dollar fell 0.06% against its main counterpart, the U.S. dollar. The loonie added 1.10% versus the Swiss franc and 0.90% to the euro at 4:19 p.m. CET (10:19 a.m. EDT). Gold fell 0.60% to $1,248.00 per fine ounce.

Oil prices: WTI down 1.27% at $41.64 a barrel, Brent down 0.94% at $44.27 a barrel.

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