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Oct
26
2011

BOC kept its interest rate unchanged at October

25 October 2011



The Bank of Canada cut its growth outlook for the Canadian economy and removed a reference to withdrawing stimulus in a statement. The economy will grow less than projected and take longer to return to its capacity level as weak U.S. growth and a “brief” European recession hurt confidence whilst also reducing export demand, the central bank said after keeping its policy rate at 1 percent. The Bank said the global economy has “slowed markedly” amid rising financial market volatility and reduced “risk-taking” by investors.

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