Economics
Oil Slump Removes Urgency From Bank of Canada Rate-Hike Path
- Central bank again holds its benchmark rate steady at 1.75%
- Borrowing costs will eventually need to rise ‘over time’
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The Bank of Canada indicated less urgency in its push toward higher interest rates as the economy grapples with slumping oil prices.
The Ottawa-based central bank left its overnight benchmark rate unchanged at 1.75 percent for a second straight decision Wednesday, citing a temporary slowdown that will create a modest amount of excess capacity and curb inflationary pressures. Weaker-than-expected consumption and housing activity also suggests the five hikes since mid-2017 may be having a stronger impact than expected, policy makers said.