Bank of Canada holds rate, says numbers reinforcing view slowdown was temporary

The Bank of Canada is holding its key interest rate steady as its senior officials insist there are more signs the economy’s abrupt winter deceleration was short-lived.

The central bank, as widely expected, kept its trend-setting rate at 1.75 per cent Wednesday — and governor Stephen Poloz appears to be in no hurry to make a move, even as he points to economic improvements.

The bank says in a statement that there’s growing evidence the economy has been re-emerging in the second quarter of this year following a slowdown in late 2018 and early 2019.

The statement says indicators show the oil sector is beginning to recover, the national housing market is stabilizing and job growth remains strong.

It says recent data also point to growth in consumer spending, exports and business investment.

But the economy, the central bank says, also faces expanding trade risks following the escalation of international conflicts and Chinese restrictions on Canadian goods that are already having a direct impact on exports.