The Bank of Canada means it when it says it’s data-dependent.
It could have justified an interest-rate cut this week. Almost every other major central bank took out insurance against the trade wars this summer, and bond prices show that those with skin in the game have concluded that trouble is coming. A sharp drop in Canadian business investment in the second quarter was very bad news.
But Bank of Canada Governor Stephen Poloz and his deputies opted to leave the benchmark interest rate unchanged at 1.75 per cent on Sept. 4.
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