Bank of Canada on hold as growth proves weaker than expected
Second quarter contraction comes as Canadian exporters struggle with bottlenecks
The Bank of Canada kept its main monetary policy tools on hold today (September 8), noting a disappointing growth figure in the second quarter.
The central bank kept its target for the overnight rate at 0.25%, which it judges to be the effective lower bound. It is continuing quantitative easing at a rate of C$2 billion (US$1.6 billion) a week.
Canadian GDP contracted about 1% in the second quarter, weaker than the bank’s forecasts. The BoC said the contraction was largely driven by a drop in
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