The Bank of Canada left its main interest rate unchanged Wednesday at +0.50% while a sounding a positive note about recent economic indicators that point to “very strong” growth in the first quarter, and signal an upswing in business investment.
Governor Poloz expects growth to tail off somewhat in Q2. Policy makers also cautioned in their communique that “trade-policy uncertainty in Washington continued to cloud the outlook, and subdued inflation and wage growth were consistent with excess slack.”
The decision to leave its benchmark rate unchanged was widely expected in a survey of 11 primary dealers of Canadian government securities.
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