TORONTO - The Bank of Canada on Wednesday held its key overnight rate at 5.0% as expected and forecast weak growth, while leaving the door open to more rate hikes to tame inflation that could stay above target for another two years."Not too many surprises. It's perhaps a touch more dovish than we had expected, but by and large, it is in line with where we thought the bank's tone would fall. Obviously holding the overnight rate unchanged was very widely expected.
"At the same time, the bank reiterated that the progress towards price stability has been slower than they'd hoped. So we weren't terribly surprised to see that they threatened additional rate hikes if needed."
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