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The Bank of Canada has decided to keep its policy interest rate steady at five percent, offering some relief to Canada's slowing real estate sector. This decision follows two consecutive rate hikes earlier in the summer, which had a cooling effect on the housing market. The central bank's governing council cited recent evidence of easing excess demand in the economy as a reason for maintaining the current rate. They also emphasized their intention to continue normalizing the bank's balance sheet.
However, the announcement did not rule out the possibility of future rate hikes. The governing council expressed a commitment to remain vigilant against persistent inflationary pressures and stated their readiness to adjust the policy interest rate if deemed necessary. This decision reflects the central bank's cautious approach to monetary policy as it assesses the evolving economic landscape in Canada.
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