Bank of Canada holds rates despite stronger inflation
Central bank predicts higher growth in coming years but warns of possible trade conflict with US
The Bank of Canada kept policy rates unchanged on July 10, arguing their current level provides the right balance between stronger growth and growing trade tensions.
“Taken together, the degree of accommodation being provided by the current policy interest rate remains appropriate,” said the BoC’s policy statement. The central bank kept its overnight rate target at 1.75%, with the bank rate at 2% and the deposit rate at 1.5%.
The central bank held rates even though inflation is rising
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