# Bank of Canada keeps key rate on hold on souring NAFTA talks, high household debt levels - Financial Post

> The Bank of Canada held its key rate at 1 per cent after two hikes, citing high household debt, a pronounced drop in housing prices and NAFTA negotiation risks. It said uncertainty over US trade policy could shrink business investment by 0.7 per cent in 2017 and 2018.

- Date: 2017-10-25 · published 2017-10-25T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/68715-bank-of-canada-keeps-key-rate-on-hold-on-souring-nafta-talks-high-household
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A slower rate-hike path and NAFTA risk weigh on the loonie, supporting higher USD/CAD and making Canadian exports cheaper abroad. A breakdown in NAFTA talks would also threaten North American feed and grain trade flows.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- financialpost.com: https://financialpost.com/news/souring-nafta-talks-high-household-debt-levels-fuel-boc-rate-decision/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.