Tuesday, April 24, 2007

UPDATE 2-Bank of Canada holds rates, flags inflation risk

(Reuters) - OTTAWA, April 24 - The Bank of Canada held its key lending rate unchanged at 4.25 percent on Tuesday and declined to hint at any rate rises ahead, even though it cautioned that inflation had sped higher than it had expected.

The Bank of Canada now sees inflation taking longer to return to the bank's 2 percent target, citing hikes in food and gasoline prices, and said the economy ran at just above its capacity in the first quarter of this year.


Read more at Reuters.com Bonds News

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