- Bank of Canada
The Bank of Canada kept its key interest rate on hold at 0.5% and said the nation's resource sector continues to adjust to lower prices for oil and other commodities. Policy makers maintained the benchmark rate on overnight loans unchanged after slashing it twice this year in January and July. While the central bank voiced concerns around China's growth prospects and noted the spill-over effects from lower oil prices on the rest of the economy, it underlined a recovery in Canada's exports coupled with unchanged inflation outlook. The BoC expects that economic growth will accelerate pace in the second half of the year, with the third quarter coming in around 1.5% and the final three months of the year advancing to 2.5%.
Meanwhile, the value of Canada's building permits issued in July declined less than expected as a drop in construction intentions for non-residential buildings was offset by an increase in plans for multi-family homes. Building permits fell 0.6% to C$7.74 billion, far short of expectations for a decrease of 5.0%. June's figures were also revised up to a surge of 15.5%. Intentions for non-residential construction plunged 13.9%, whereas residential building permits leapt 8.7%.
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