BULLET: CANADA BOC: Maintains rate target at 1.75%, drops....>

CANADA BOC: Maintains rate target at 1.75%, drops stimulus phrase

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- "All things considered, Governing Council judges it appropriate to 

maintain the current level of the overnight rate target." In Sept. said 

"current degree of monetary stimulus remains appropriate."

- "Governing Council is mindful that the resilience of Canada's economy 

will be increasingly tested as trade conflicts and uncertainty persist. 

In considering the appropriate path for monetary policy, the Bank will 

be monitoring the extent to which the global slowdown spreads beyond 

manufacturing and investment."

- Trade war hurting Canadian business investment, exports and energy 

sector investment. 

- Economic growth for 2019 revised up (from 1.3% to 1.5%), revised 

down for 2020 (from 1.9% to 1.7%).

- Expected GDP growth implies narrower output gap. 

- BOC expects inflation tracking close to 2%; temporary downside 

pressure seen in 2020. 

- Trade policy risk is two-sided but tilted to downside.

- Canadian dollar has strengthened against other currencies; the 

Canada-US exchange rate remains near July level. 

- MNI Median was for rate to remain 1.75%.