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The Bank of Canada held its monetary policy meeting last week on Wednesday. As widely expected, the central bank left the key interest rates unchanged amid a sudden and a sharp slowdown in the nation’s economic growth in the final months of 2018.
The weakness in the data made policymakers pause the rate hikes and rethink the case for further tightening.
The benchmark interest rates were held steady at 1.75%. This was a ten-year high as widely expected by the overnight swap markets.
The Canadian dollar extended losses after the monetary policy meeting. This came as the Bank of Canada reversed its hawkish stance from the previous meetings. Before, the central bank had indicated that further rate hikes were necessary.
However, this stance changed as the bank claimed that due to increased uncertainty, the timing of future interest rate hikes would depend on the data.
In its mone...
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