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Bank of Canada Reiterates Caution in Holding Rates Steady

  • Central bank leaves benchmark interest rate at 1 percent
  • Sees ongoing slack in labor market, makes no mention of dollar
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Photographer: Brent Lewin/Bloomberg
Updated on

The Bank of Canada kept borrowing costs on hold at its last interest rate decision of 2017 and reiterated it will be “cautious” with future moves, indicating it’s in no rush to cool an economy that is very close to capacity.

Policy makers led by Governor Stephen Poloz left the benchmark overnight rate at 1 percent, as the market expected. It’s the second straight hold after consecutive hikes in July and September.