The Bank of Canada said on Tuesday that it would hold its target for the overnight rate at 4.5%.
The decision was widely expected because of deteriorating US economic conditions and the Canadian dollar's appreciation.
The central bank confirmed this: "The combined effect of a weaker US outlook and a higher assumed level of the Canadian dollar implies that net exports will exert a more significant drag on the economy in 2008 and 2009 than previously expected."
Revised projections put US econom
- Trump criticises Fed over rate rises and threatens higher tariffs
- Implementation of new Sofr rate is “ahead of schedule”, says Fed vice-chair
- Central bank digital currency a ‘terrible idea’, US Congress told
- MAS strengthens use of data to combat financial crimes
- RBA paper modifies DGSE to include housing sector