Investing.com - The Bank of Canada left its benchmark interest rate unchanged for the 17th consecutive month in October and signaled that it could hike rates in the coming months, it said on Tuesday.
In a statement, the central bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.
The central bank said in an accompanying rate statement that, “Over time, some modest withdrawal of monetary policy stimulus will likely be required, consistent with achieving the 2% inflation target.”
“The timing and degree of any such withdrawal will be weighed carefully against global and domestic developments, including the evolution of imbalances in the household sector,” the statement added.
Following the release of the data, the Canadian dollar erased losses against its U.S. counterpart, with USD/CAD easing down 0.04% to trade at 0.9918.