Bank of Canada delays rate hike

OTTAWA - The Bank of Canada held its overnight interest rate at 1% on Wednesday but dramatically revised its projections to say any hike would be further away than previously thought, because of excess capacity, soft inflation and stabilizing household debt.

“While some modest withdrawal of monetary policy stimulus will likely be required over time, consistent with achieving the 2%inflation target, the more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest that the timing of any such withdrawal is less imminent than previously anticipated,” said the central bank, led by Mark Carney.

Expect mortgage rates as well as lines of credit to remain low for the coming year at least.

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