UPDATE 3-Bank of Canada holds rates but talks of more hikes, boosting C$ [Reuters]
Royal Bank Of Canada (RY)
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Source: Reuters
UPDATE 3-Bank of Canada holds rates but talks of more hikes, boosting C$ | Reuters 4 Min Read (Adds quotes by Bank of Canada governor) By David Ljunggren OTTAWA, Jan 9 (Reuters) - The Bank of Canada held interest rates steady as expected on Wednesday but said more increases would be necessary even though low oil prices and a weak housing market will harm the economy in the short term. Governor Stephen Poloz said the challenges were temporary and he still believed the economy would at some stage be “operating at full capacity ... with inflation on target and with interest rates in a zone where they are no longer stimulating or contracting aggregate demand”. The bank has raised rates five times since July 2017 and as recently as last month said the pace of tightening could be sped up depending on economic data. But on Wednesday it said rates would need to rise “over time,” the first time it has used those words to describe the pace of tightening. Poloz told a news conference the referen
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