Bank of Canada holds interest rate, says it will curb bond purchases

A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, May 23, 2017. REUTERS/Chris Wattie/File Photo

OTTAWA, July 14 (Reuters) - The Bank of Canada held its key overnight interest rate at a record low 0.25% as expected on Wednesday and said it would cut its weekly net purchases of government of Canada bonds to a target of C$2 billion ($1.6 billion) from C$3 billion.

In a statement, the central bank said it remained committed to keeping the interest rate unchanged until economic slack was absorbed. This is expected to happen some time in the second half of 2022.

($1 = 1.2458 Canadian dollars)

Reporting by Julie Gordon in Ottawa

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