As expected, the Bank of Canada raised its key interest rate to 1.25 per cent Wednesday. There were plenty of arguments in favour, chiefly back-to-back blockbuster labour force surveys. But Governor Stephen Poloz also has to contend with NAFTA uncertainty and record household debt levels. Both of which could go a long way in determining how much higher rates will rise this year.   

The decision and monetary policy report was released at 10:00 a.m. ET. We’ve got special coverage of Poloz and Senior Deputy Governor Carolyn Wilkins’ news conference at 11:15 a.m. ET, and we’ll wrap on the Bank of Canada in the best way possible: an exclusive interview with the governor at 4:00 p.m. ET. In between, we’ll have plenty of analysis – including from Gluskin Sheff Chief Economist David Rosenberg, who’s been wasting no opportunity to poke holes in the jobs data or talk down “hyperventilating” Bay Streeters.

Here’s some of what the economy has churned out since the last decision on Dec. 6:

 

AECON REPORTEDLY FACES RESISTANCE FROM INDUSTRY PEERS

The Globe and Mail is reporting a trio of construction companies are urging the federal government to block Aecon’s $1.5-billion takeover by the overseas investment arm of China Communications Construction Company. According to the Globe, representatives from PCL Constructors, Ledcor Group and P.W. Graham & Sons Construction discussed the matter last week with civil servants from Minister Navdeep Bains’ department. Nobody is commenting on the record. As a reminder, here’s how Aecon CEO John Beck framed the benefits to Canada when we spoke with him in October. 

WOMEN’S COUNCIL RECOMMENDATIONS

Almost a full year since Justin Trudeau and Donald Trump unveiled the Canada-United States Council for Advancement of Women Entrepreneurs and Business Leaders, today we'll get the group's first batch of formal recommendations. No shortage of clout on the council, with names like GM CEO Mary Barra, Linamar CEO Linda Hasenfratz and NRStor Chair Annette Verschuren on board. Watch for Paige Ellis’s story on BNN.ca later this morning.

OTHER NOTABLE STORIES:

-Bitcoin is on the brink of slipping below US$10,000 for the first time since Dec. 1. The cryptocurrency has plunged almost 28 per cent so far this month.  

-Still no comment from Home Capital Group in response to short seller Marc Cohodes’ lawsuit seeking $4 million in damages.

-Time is running out for U.S. lawmakers to avert a partial government shutdown. Multiple reports this morning that the House of Representatives will vote on a stopgap measure tomorrow.  

-Hunter Harrison’s legacy was fully evident in CSX results late yesterday, with the company’s full-year adjusted operating ratio improving to 64.8 per cent from 67 per cent in 2016.

-Ford shares are trading lower in the pre-market after warning full-year profit will fall this year.

NOTABLE RELEASES/EVENTS

Notable earnings: Kinder Morgan Canada, Bank of America, Goldman Sachs

Notable data: U.S. industrial production

9:00 a.m. ET: Sidewalk Labs CEO Dan Doctoroff speaks at RBC Disruptors event in Toronto

10:00 a.m. ET: Bank of Canada releases interest rate decision

11:15 a.m. ET: Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins hold news conference in Ottawa

12:00 p.m. ET: International Trade Minister François-Philippe Champagne makes announcement in Ottawa on "responsible Canadian business conduct abroad"

2:00 p.m. ET: Natural Resources Minister Jim Carr announces support for forestry industry at B.C. Natural Resources Forum in Prince George

2:00 p.m. ET: U.S. Federal Reserve releases Beige Book

3:00 p.m. ET: Transport Minister Marc Garneau speaks to media in Montreal after discussing NAFTA modernization with transportation industry leaders in Montreal

Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.