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Bank of Canada Defies Interest-Rate Cut Predictions


The Bank of Canada (BoC) has decided to keep its benchmark interest rate at 1.75% for its sixth-straight meeting this year despite the escalating US-China trade conflicts that are starting to hurt the country’s economy.

“Canada’s economy is operating close to potential and inflation is on target,” BoC said on Wednesday. “However, escalating trade conflicts and related uncertainty are taking a toll on the global and Canadian economies. In this context, the current degree of monetary policy stimulus remains appropriate.”

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