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Carney Strengthens Bias to Raise Rates as Debt Risk Grows

The Bank of Canada strengthened its bias for raising interest rates, retaining its outlier status among the Group of Seven nations while signaling concern about record household debts it says will keep growing.

Policy makers led by Governor Mark Carney kept the benchmark rate at 1 percent, where it’s been more than two years, and said “some modest withdrawal of monetary policy stimulus will likely be required.” The decision to keep the rate unchanged was expected by all 26 economists in a Bloomberg News survey, while some had also said the Ottawa-based bank would weaken or drop its past wording that higher rates “may become appropriate.”