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Bank of Canada leaves policy unchanged

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The Bank of Canada decided to leave the target for the overnight rate at 0.5%, against some expectations of a 25 bps cut. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%.

    However, the BoC lowered its growth forecast for 2016, and said the recent decline in oil and other commodities prices is a "setback" for the Canadian economy. The Bank projects Canada’s economy will grow by about 1.5% in 2016 and 2.5% in 2017.

    Meanwhile, the Bank considers inflation is evolving broadly as expected and judges the current stance of monetary policy as appropriate . “All things considered, therefore, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, as expected”, said in a statement.
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