BOC on hold until next year, CIBC says
. In a short statement accompanying a decision to keep rates steady at 0.5%, the Bank continued to highlight that the economy faces a "material" amount of excess capacity. in that regard, the statement points to weakness in wages and hours worked as signals of slack in the labour market, despite what has been impressive employment growth. Although it acknowledges that the growth in Q4 was "slightly" firmer than they had anticipated, it continues to warn that exports continue to face competitiveness challenges. Also pointing to risks on the trade front, the statement highlights uncertainties weighing on the outlook.
