Canada: Bank of Canada hold rates

The Bank of Canada decided to hold its benchmark interest rates at 0.5% in May due to uncertainty, which according to the bank, “continue(s) to cloud the global and Canadian outlooks”.

Weak wage growth and low underlying inflation have been cited as key reasons behind the central bank’s decision to hold the rate, outlining that, despite the strong start to the year, the economy has room for improvement.

It was widely expected that the central bank was going to hold the rate at 0.5% due to uncertainty surrounding the U.S agenda on trade and taxation.

The rate decision followed the bank’s announcement that it has increased growth projection following strong performance in employment, consumer spending, and the housing market.

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