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Bank of Canada keeps overnight rate target at one percent

Xinhua,December 08, 2017 Adjust font size:

OTTAWA, Dec. 7 (Xinhua) -- The Bank of Canada announced on Thursday that it continues to maintain its target for the overnight rate at one percent.

But the Canadian central bank said that more rate hikes are likely in store after moves in July and September.

Economists said Canada's export-driven economy would be hurt by the possible demise of the North American Free Trade Agreement, which U.S. President Donald Trump has targeted for overhaul. Some 75 percent of Canadian exports go to the United States.

The Canadian dollar weakened as investors reduced the odds of a rate hike in early 2018, touching 0.78.27 U.S. dollar on Thursday.

The Canadian central bank said recent Canadian data are in line with its October outlook, though it noted inflation has been slightly higher than expected, reflecting the continued absorption of economic slack.

It added that business investment continued to contribute to growth after a strong first half to 2017 and public infrastructure spending is becoming more evident in the data. Enditem