The Bank Of Canada Has Held Its Benchmark Overnight Interest Rate At 1.75 Per Cent As Expected By Many Analysts.

The Bank of Canada has held its benchmark overnight interest rate at 1.75 per cent as expected by many analysts.
CBC - December 3rd, 2019

Retailers foresee holiday joy — even as Poloz looks to hold line on rates: Don Pittis

While the world cuts interest rates, the Bank of Canada likely won't if we keep shopping

South of the border, there was much hand-wringing that a shortened holiday spending season this year just wouldn't give our American cousins enough time to shop till they drop.

According to some retail analysts, a late Thanksgiving meant a late Black Friday, viewed as the starting gun for the U.S. Christmas spending frenzy.

Of course, Canadians celebrate Thanksgiving a month earlier and don't quite have that same special Friday to shop, shop, shop. But there is reason to think the season of retail therapy that is also a phenomenon here will give Bank of Canada governor Stephen Poloz one less reason to cut interest rates.

Most analysts expect Poloz to hold rates steady at 1.75 per cent tomorrow, and sturdy consumer spending is part of the rationale.

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