The Bank of Canada has held its policy rate at 2.25 per cent for a seventh consecutive decision, a quarter point above its 2 per cent inflation target, even as headline inflation ran a full point higher than that target in August on rent and gasoline costs. The US Federal Reserve, facing the same oil-driven pressure, was expected to move the opposite way, with markets pricing roughly nine in ten odds of a hike at its own decision the same week. Both banks are reading an identical shock and reaching different conclusions.
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