Bank of Canada keeps overnight rate target unchanged at 1%
Ottawa, Dec 6 (IBNS): After two consecutive hikes in the present fiscal year, the Bank of Canada has decided to keep the overnight rate target unchanged, media reports said.
The rate has been kept steady at 1%.
The central bank of Canada said on Wednesday that it has decided to maintain the overnight rate.
The Bank of Canada was quoted by CBC News: "While higher interest rates will likely be required over time."
The bank added: "..the current stance of monetary policy remains appropriate."
"The global economy is evolving largely as expected in the Bank’s October Monetary Policy Report (MPR). In the United States, growth in the third quarter was stronger than forecast but is still expected to moderate in the months ahead. Growth has firmed in other advanced economies.," the central said in a statement.
"Meanwhile, oil prices have moved higher and financial conditions have eased. The global outlook remains subject to considerable uncertainty, notably about geopolitical developments and trade policies" the statement added.
Earlier in September, the Bank of Canada increased the benchmark interest rate by 0.25% to 1% making the second consecutive hike in the 2017-2018 fiscal year.
Before September, the central bank of Canada hiked the interest rate in July which was the first time in sever years of time.
The next announcement of the overnight rate target will be made on Jan 17, 2018.
(Reporting by Suman Das)
Image: Facebook profile of Bank of Canada.
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