Bank of Canada holds, acknowledges signs of slowdown
As had been widely expected, the Bank of Canada held its benchmark overnight rate at 5 percent this morning, warning that “growing evidence that past interest rate increases are dampening economic activity and relieving price pressures” Officials noted signs of slowing momentum across the economy, saying “Consumption has been subdued, with softer demand for housing, durable goods and many services. Weaker demand and higher borrowing costs are weighing on business investment,” and pointed to a welcome “approaching balance” in overall supply and demand. According to updated forecasts contained in the Monetary Policy Report, the economy is expected to expand 1.2...