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How the current stance of the Bank of Canada could be determined, following the recent interest rate hike?
Mon, 22 Jan 2018 08:19:26 GMT
Source: Dukascopy Bank SA
The recent run of Canadian strong economic figures was hard to ignore, as the Bank of Canada's policy decisions are also a data-dependent, especially with the economy outperforming the Bank's base case since October 2017.
The BoC raised rates to 1.25% from 1.00% last week, as solid employment growth and more solid inflation dampened the pressure of NAFTA unclarities.
The policymakers anticipated some expansion slowdown to a more sustainable level, with output growth remaining relatively strong. Though, the outlook of the NAFTA remaining uncertain could provide a stronger hit on business investment and exports. While further rate increases remained warranted, some monetary stimulus would likely to be needed to sustain an optimal expansion growth pace, the Bank indicated, suggesting no need to return rates to normal levels.
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