Bank of Canada Keeps Policy Rate at 5%, Ready to Hike More if Needed

id5494259 baseimage 3 - The Japan Weeknd Magazine
OTTAWA—The Bank of Canada, as widely predicted, held its key interest rate at 5 percent on Dec. 6 and said it “remains prepared to raise the policy rate further if needed.”
The BoC statement described the recent weakening of the Canadian economy but didn’t change its language from its prior interest rate decision on Oct. 25 regarding its next most likely move. The central bank has now kept its overnight rate target at 5 percent for three straight decisions following July’s rate hike.
The central bank said that recent economic data “suggest the economy is no longer in excess demand.” In October, the BoC said supply and demand were “approaching balance,” as suggested by a range of indicators….


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