Investing.com – As expected, the Bank of Canada (BoC) decided to keep its benchmark interest rate on hold in September while noting that the return to full capacity for the Canadian economy would occur “materially later” than expected in July, according to the monetary policy report released on Wednesday.
The BoC said it was leaving its unchanged at 0.50%, in line with market expectations, as well as keeping the bank rate a 0.75% and the deposit rate at 0.25%.
The Canadian monetary authority has held the key interest rate unchanged since the surprise 25 basis point cut in July 2015.
The BoC noted that the global economy was expected to regain momentum in the the second half of this year and through 2017 and 2018.
For Canada, the Bank projected growth of 1.1% in 2016 with an increase to “about 2%” in both 2017 and 2018.
“The projection implies that the economy returns to full capacity around mid-2018, materially later than the Bank had anticipated in July,” the BoC noted in the press release.
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