Bank of Canada raises rates as Poloz’s tale of recovery from Great Recession finally starts coming true
Bank of Canada Governor Stephen Poloz’s tale about how the economy would recover from the Great Recession is finally coming true.
The central bank ignored Donald Trump’s trade vandalism and raised its benchmark interest rate a quarter point to 1.5 per cent on July 11.
It did so mostly because of an unexpected jump in business investment and exports this year, two growth engines that Poloz said in 2013 would drive Canada’s battered, post-crisis economy back to better days. Instead, those motors sputtered, forcing the central bank to keep interest rates low. That left the burden of economic growth on Canada’s debt-addled households, which did their duty and kept spending.
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