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Bank of Canada Holds Interest Rate Steady; Some Suggest a Rate Cut Could be Back on the Table

(Pete Evans – CBC News)

Canada’s central bank has decided to keep its benchmark interest rate at 1.75 per cent, and says the timing of possible future hikes has become increasingly uncertain.

The Bank of Canada says the economic slowdown that began at the end of last year is a bit worse than it was expecting, including a sharper-than-anticipated slowdown in Canada’s oil patch. The bank also singled out softness in the housing market and consumer spending as reasons for a gloomier outlook.

“It is clear that global economic prospects would be buoyed by the resolution of trade conflicts,” the bank said. “With increased uncertainty about the timing of future rate increases, [the bank] will be watching closely developments in household spending, oil markets, and global trade policy.” Click here to read more.