Bank of Canada warns of risks to growth, holds rates steady

(Recasts, adds from bank statement, economist comment)By Andrea Hopkins and Leah Schnurr The Bank of Canada warned on
Wednesday that the economy could be weaker than it anticipated
just two months ago as exports disappointed, but the central
bank held rates steady as it stuck to a forecast that growth
will bounce back in the second half.In a statement that was bleaker than the market had
expected, the bank also said the U.S. outlook for business
investment has become less certain, despite a healthy labor
market and solid consumption.”Exports disappointed even after accounting for weaker
business and residential investment in the United States,
adjustments in the resource sector, and cutbacks in auto
production,” the bank said in the statement.

Canada is counting on U.S. demand to boost exports and lift
Canada’s economy out of the malaise as slumping commodity prices
hurt the key resource sector. …
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