The Bank of Canada has kept interest rates on hold at 0.75 per cent with an assessment that the impact of the oil crisis is starting to ease. It says it believes the impact on growth will be more “front-loaded” than previously thought but that it would “not be larger”. The bank’s estimates for growth were slashed to zero for the first quarter, down from the previous outlook of 1.5 per cent. For the rest of the year it expects growth of 1.9 per cent. The BoC says it expects growth of 2.5 per cent in 2016 (up from 2.4 per cent in previous outlooks) and 2 per cent in 2017.
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