BoC Considered that Uncertainty About Interest Rates Did Not Imply Inaction
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3 Articles
On October 28, the Bank of Canada increased its policy rate from 2.25% to 2.5%. This is its first increase in more than three years, decided after overall inflation rose to 3.1% in September (2.2% if gas is excluded). Usually, the Bank reacts to observed inflation rising from its target range of 1 to 3%. This time, the move was preventive.
The minutes of the Bank of Canada's meeting on the 28 October Monetary Policy Decision showed that Board members agreed that the uncertainty surrounding the future course of interest rates did not mean inaction, while stressing the need to act carefully to assess the impact of economic developments on future expectations. The central bank of Canada raised the interest rate [...].
The BoC raised its interest rate last month by 25 basis points, up to 2.50%, for the first time in more than three years, citing the increase in energy prices that, he said, could have an impact on pressures on non-energy costs.
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