The Canadian dollar continued to weaken against its U.S. counterpart as the Bank of Canada softened its tone for a rate hike, but the loonie may regain its footing going into November as the economic docket is expected to instill an improved outlook for the world’s 10th largest economy. Indeed, the central bank reiterated that ‘some modest withdrawal of monetary policy stimulus will likely be required’ after keeping the benchmark interest rate at 1.00%, but continued to highlight the ‘imbalances in the household sector’ as the record-expansion in private sector credit ‘remains the biggest domestic risk’ for the region.
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