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Bank of Canada leaves key interest rate unchanged, no hurry to raise rates
OTTAWA -- Even though global growth is "somewhat" exceeding expectations, the Bank of Canada indicated Tuesday it is in no hurry to begin raising its benchmark rate as the recovery continues to depend on "exceptional" fiscal and monetary stimulus.
As widely anticipated, the central bank left its benchmark rate unchanged at 0.25%, and reiterated its conditional pledge to keep it at that historically low level until the end of the second quarter in an effort to reach its 2% inflation target.
Most bank watchers were looking to this statement for any changes to the central bank`s forecast and hints it might begin backing away from its conditional rate pledge. Overall, analysts say the statement tried to reinforce caution about the recovery unfolding.
"The renewed and determined commitment to keep rates steady until mid-year can be seen as slightly dovish," said Douglas Porter, deputy chief economist at BMO Capital Markets.
The main stock index in Toronto was down slightly on the central bank statement, while the Canadian dollar had slipped roughly 40 basis points, to just above US97¢, after hitting a three-month high.
Read the full article here.
OTTAWA -- Even though global growth is "somewhat" exceeding expectations, the Bank of Canada indicated Tuesday it is in no hurry to begin raising its benchmark rate as the recovery continues to depend on "exceptional" fiscal and monetary stimulus.
As widely anticipated, the central bank left its benchmark rate unchanged at 0.25%, and reiterated its conditional pledge to keep it at that historically low level until the end of the second quarter in an effort to reach its 2% inflation target.
Most bank watchers were looking to this statement for any changes to the central bank`s forecast and hints it might begin backing away from its conditional rate pledge. Overall, analysts say the statement tried to reinforce caution about the recovery unfolding.
"The renewed and determined commitment to keep rates steady until mid-year can be seen as slightly dovish," said Douglas Porter, deputy chief economist at BMO Capital Markets.
The main stock index in Toronto was down slightly on the central bank statement, while the Canadian dollar had slipped roughly 40 basis points, to just above US97¢, after hitting a three-month high.
Read the full article here.