Bank of Canada leaves interest rate unchanged
OTTAWA — The Bank of Canada left its benchmark interest rate unchanged Wednesday after raising it twice since the summer — but it signalled that future hikes are likely on the horizon.
In its scheduled announcement, the central bank said it held off this time in part because it expects the recent strength of the Canadian dollar to slow the rise in the pace of inflation.
To make its case, the bank also pointed to the substantial, persistent unknowns around geopolitical developments as well as U.S.-related fiscal and trade policies, such as the renegotiation of the North American Free Trade Agreement.
Governor Stephen Poloz has introduced two rate hikes since July — at consecutive policy meetings — in response to the economy’s impressive run over the last four quarters. The increases removed the two rate cuts introduced in 2015 as insurance following the collapse in oil prices.
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