Bank of Canada Hikes Rates as Strong Economy Outweighs NAFTA Uncertainty

As was widely expected, the Bank of Canada raised its overnight rate target by 0.25 percent to 1.25 percent on Jan. 17.
Bank of Canada Hikes Rates as Strong Economy Outweighs NAFTA Uncertainty
Bank of Canada Governor Stephen Poloz responds to questions in Ottawa on Jan. 17, 2018. The economy's impressive run prompted the Bank of Canada to raise its trend-setting interest rate for the third time since last summer. The Canadian Press/Adrian Wyld
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OTTAWA—As was widely expected, the Bank of Canada raised its overnight rate target by 0.25 percent to 1.25 percent on Jan. 17 while sounding a cautious tone as risks surrounding NAFTA increases.

“Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity,” the bank’s press release states.
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
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