Economics
Bank of Canada Keeps Rate Unchanged, Warns of Elevated Inflation
- Stand-pat decision leaves expectations for 2022 hikes intact
- Officials say omicron variant has injected ‘uncertainty’
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The Bank of Canada kept borrowing costs unchanged, but highlighted strength in the labor market and worries about the persistence of inflation that will likely keep expectations of imminent interest rate hikes intact.
In a statement-only decision Wednesday, policy makers led by Governor Tiff Macklem left the benchmark overnight rate unchanged at 0.25% and reiterated the economy continues to require considerable monetary policy support.