As predicted, the Bank of Canada decided to keep its overnight target at 4.5% on Tuesday. That's twice now that the Bank has put off applying the tightening it started in July, and it looks as though this temporary pause has now been upgraded to a medium-term strategy. The October Monetary Policy Report (32-page pdf) outlines the combination of tighter liquidity in financial markets and the worse-than-previously-expected outlook for the US economy behind the move.
It occurs to me that I've spent a lot of time recently blogging about the Bank of Canada. Now that they've committed themselves to doing not very much for the next few months, I'll try to find other things to write about.
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