UPDATE 1-Bank of Canada holds rates, sees rebound after oil shock

April 15, 2015 2:32 PM

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OTTAWA, April 15 (Reuters) - The Bank of Canada held its benchmark interest rate steady on Wednesday, saying the economy will pick up as non-energy exports and labor markets strengthen even though the oil price crash probably cut economic growth to zero in the first quarter.

A considerable easing in financial conditions largely due to the bank's surprise interest rate cut in January, together with improving U.S. demand, will bolster the transition of Canada's oil-heavy economy to non-energy exports, investment and a stronger jobs market, the bank said.

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