Market Wire: Bank of Canada Delivers Smaller-Than-Expected 50 Basis Point Hike, Loonie Tumbles
The Bank of Canada lifted its benchmark overnight rate to 3.75 percent this morning, disappointing Canadian dollar bulls who had expected a 75-basis point move. In the statement accompanying the decision, the central bank said “the economy continues to operate in excess demand and labour markets remain tight” but warned, “The effects of recent policy rate increases by the Bank are becoming evident in interest-sensitive areas of the economy: housing activity has retreated sharply, and spending by households and businesses is softening. Also, the slowdown in international demand is beginning to weigh on exports.” As expected, the Bank lowered growth...