As far as economic growth is concerned, the Bank of Canada has low expectations for the country in the near future.
The Crown corporation is downgrading Canada’s outlook, pointing a finger at expected reduced exports and a potential decline in real estate sales due to new mortgage rules.
Those factors pushed the Bank to hold it’s trend setting interest rate at 0.5%, on Tuesday.
The Central Bank is changing it’s July prediction of 1.3% growth in Canada’s real gross domestic product, amending to just 1.1%, this year.
They also adjusted next year’s forecast to 2%, down from its previous call of 2.2% growth.
However, the BOC is predicting a rebound for the last half of this year, due to global and U.S. momentum.
The Canadian dollar jumped after the latest interest rate announcement. The loonie rose 0.60 of a cent to 76.83 cents US.