Canada Turns Cautious on Economy as it Keeps Rates on Hold

Canada kept interest rates on hold on Wednesday, as a recent spate of disappointing economic readings and the renewed sell-off in crude prompted policymakers to take a more cautious stance, the Financial Times reported. The Bank of Canada held its benchmark rate steady at a 10-year high of 1.75 per cent, as widely expected. However the Canadian dollar slumped to trade 1 per cent lower at C$1.3397 per dollar — the lowest since June 2017 — as policymakers warned that the economy could be heading for a slowdown in the fourth quarter. “The Canadian economy as a whole grew in line with the Bank’s projection in the third quarter, although data suggest less momentum going into the fourth quarter,” said the bank in the statement that accompanied its decision. “The global economic expansion is moderating largely as expected, but signs are emerging that trade conflicts are weighing more heavily on global demand,” it added. Read more