MID-DAY: Bank of Canada keeps interest rate steady; oil continues to rally higher
The Bank of Canada will keep its interest rate steady at 1.25 per cent for now. This message came from Governor Stephen Poloz as he said there is some progress in key areas of Canada’s economy like inflation and wage growth, but there’s still room to expand. He said GDP growth was weaker than expected in the first quarter, but should rebound in the second with foreign trade expansion, which could lead to another rate hike.
The Loonie has dipped slightly following the announcement to 79.38 cents US. Traders will be watching how the currency reacts as another NAFTA meeting is set for Thursday, with negotiators under pressure to reach a deal.
On Bay Street, the TSX is rallying 181 points to 15,535 and across the border the Dow is at 24,775.
Oil continues its rally up to 67.95 a barrel.