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BOC holds overnight rate, predicts growth to pick up in Q2

Bank of Canada rate decision

The Bank of Canada has left its overnight rate at 1.75 percent, moving in line with forecasts, where markets will turn their focus on the press conference held by BOC Governor and Senior Deputy Governor.

The central bank expects growth to pick up, starting in the second quarter of this year, where real GDP growth would average 1.2 percent in 2019 and around 2 percent in 2020 and 2021.

As for inflation, the BOC said the CPI inflation will likely dip in the third quarter, largely because of the dynamics of gasoline prices, before returning to about 2 percent by year end. The bank predicts inflation to remain around 2 per cent through 2020 and 2021.

As of 14:02 GMT, the USDCAD pair strengthened to a high of 1.3520, the highest since early January, while currently trading around 1.3511.

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