Bank of Canada keeps key interest rate at 1.75pc

OTTAWA, July 11 (AFP): Canada's central bank on Wednesday held its key lending rate at 1.75 per cent in line with economists' expectations, while revising its growth forecast for the Canadian economy upwards.

The Bank of Canada, whose last rate increase was in October, said in a statement that "the degree of accommodation being provided by the current policy interest rate remains appropriate," while revising its growth forecast for the country's economy to 1.3 per cent in 2019, up from its previous projection of 1.2 per cent.

The bank meanwhile called attention to global tensions, stating that the "escalation of trade conflicts remains the biggest downside risk to the global and Canadian outlooks."

Faced with a slowdown, "central banks in the US and Europe have signaled their readiness to provide more accommodative monetary policy and further policy stimulus has been implemented in China," it added.