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By Greg Quinn
OTTAWA (MNI) - The Bank of Canada left its key interest rate at
1.75% and said this degree of accommodative policy remains
There was no new clear signal about a potential change in
rates in the statement Wednesday, and the decision to hold was
expected by investors and economists surveyed by MNI.
The BOC said there is increasing evidence the economy shifted into
a pickup starting in the second quarter including consumer spending,
exports and signs of firming business investment. Trade tensions have
risen globally and Canadian companies are seeing increased
restrictions on trade with China. Exporters should benefit from
the end of metals tariffs with the U.S. and from signs that a
replacement for the Nafta trade pact will be ratified.
``The degree of accommodation being provided by the current policy
interest rate remains appropriate,'' the BOC's one-page statement said.
``Overall, recent data have reinforced Governing Council's view that the
slowdown in late 2018 and early 2019 was temporary, although global
trade risks have increased.''
Following are other highlights of the decison:
-BOC will remain data dependent and especially will continue monitoring
household spending, oil markets, and global trade.
-Housing is stabilizing; oil sector is recovering; pickup seen in 2Q of
consumer spending and exports.
-However, inventories up sharply in Q1, which might dampen production
--MNI Ottawa Bureau; email@example.com