- The Bank of Canada left its key rate unchanged at 1%, as expected.
- The BOC noted improvement in the jobs market following the unemployment rate's drop to a nine-year low in November.
- The BOC said it will continue to be cautious and data-dependent.
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Bank of Canada holds key rate as expected, Canadian dollar falls
The Bank of Canada was expected to leave its key interest rate unchanged amid uncertainty surrounding the housing market and NAFTA.
The Bank of Canada held its key interest rate at 1% as economists had expected.
In its statement on Wednesday, the BOC acknowledged recent improvement in the jobs market, and said it would maintain a cautious approach to raising rates that depends on incoming data.
Statistics Canada reported Friday that Canada's unemployment rate fell to the lowest level since 2008 in November, and its economy added 441,400 new full-time jobs. "
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Uncertainty about the housing market and NAFTA were expected to keep the BOC on hold. Also, the BOC raised rates in back-to-back meetings in July and September.
The Canadian dollar fell against the US dollar following the BOC decision, by 0.4% to 1.2744.
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