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3/9/2016, 4:05 PM (Source: TeleTrader)
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Bank of Canada leaves interest rate at 0.5%

The Bank of Canada (BoC) announced decision not to raise basic overnight interest rate of 0.5%. "The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent," said the post on its website published on Wednesday.

The economists and investors were looking for any clues as to how Canadian central bank views the country's economy.

The announcement came two weeks before this year's budget comes in effect, with lines for infrastructure projected to stimulate the economic growth. The BoC lowered its estimation of annual growth of the economy to 1.4%, from previous projection of 2%. "The low level of oil prices will continue to dampen growth in Canada and other energy-producing countries," said the statement.

"Material excess capacity in the Canadian economy will continue to dampen inflation," said the central bank in Ottawa.

The stock market in Toronto was in green territory, as the S&P/TSX index rose 0.63% to 13,394 points with all sectors gaining except for materials.

The Canadian dollar was valued 0.32% higher against its main counterpart, the U.S. dollar. The loonie added 0.78% versus the Swiss franc and 0.55% to the euro at 4:05 p.m. CET (10:05 a.m. EST).

Breaking the News / ZR