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MNI BRIEF: Text of Bank of Canada Interest-Rate Decision

The Bank of Canada today reduced its target for the overnight rate to 3.25%, with 
the Bank Rate at 3.75% and the deposit rate at 3.25%. The Bank is continuing its policy of balance 
sheet normalization.

The global economy is evolving largely as expected in the Bank’s October Monetary Policy 
Report (MPR). In the United States, the economy continues to show broad-based strength, with 
robust consumption and a solid labour market. US inflation has been holding steady, with some 
price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, 
recent policy actions combined with strong exports are supporting growth, but household 
spending remains subdued. Global financial conditions have eased and the Canadian dollar has 
depreciated in the face of broad-based strength in the US dollar. 

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The Bank of Canada today reduced its target for the overnight rate to 3.25%, with 
the Bank Rate at 3.75% and the deposit rate at 3.25%. The Bank is continuing its policy of balance 
sheet normalization.

The global economy is evolving largely as expected in the Bank’s October Monetary Policy 
Report (MPR). In the United States, the economy continues to show broad-based strength, with 
robust consumption and a solid labour market. US inflation has been holding steady, with some 
price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, 
recent policy actions combined with strong exports are supporting growth, but household 
spending remains subdued. Global financial conditions have eased and the Canadian dollar has 
depreciated in the face of broad-based strength in the US dollar. 

Keep reading...Show less