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Bank of Canada Holds Rate but Sends Fresh Signals About Future Increases

Posted December 07, 2017

Under Economic Issues, International Trade Issues

(Canadian Press)

The Bank of Canada stuck with its trend-setting interest rate Wednesday – but it offered fresh, yet cautious, warnings to Canadians that increases are likely on the way.

The central bank has now left the rate locked at one per cent for two straight policy announcements after the strengthening economy prompted it to raise it twice in the summer.

In announcing its latest decision, the bank pointed to several recent positives that could support higher rates in the coming months. They included encouraging job and wage growth, sturdy business investment and the resilience of consumer spending despite higher borrowing costs and Canadians’ heavy debt loads. Click here to read more.

Related: Bank of Canada Maintains Overnight Rate Target at 1 Percent (BoC)