Bank of Canada holds rates steady, citing economic slack

(Recasts with rate cut off the table, adds economist comment)By Andrea Hopkins and Leah Schnurr Dec 7 – The Bank of Canada pointed to a
“significant” amount of slack in the Canadian economy as it held
interest rates steady on Wednesday, but also used language
suggesting a rate cut is off the table as global growth picks
up.Sounding less dovish than several analysts had expected, the
central bank trod a fine line in moving away from a possible
interest rate cut even as it pointed to all the reasons why
Canada would not follow the U.S. Federal Reserve in raising
rates.The central bank’s decision to leave rates unchanged was
widely expected, and sets the stage for a divergence in policy
from that of the Fed, which is expected to hike rates later this
month.

Citing a positive for every negative it outlined, the bank
moved away from …