Bank of Canada holds policy rate unchanged at 1% (by V. Phani Kumar)

NEW YORK (MarketWatch) -- The Bank of Canada on Wednesday left its overnight rate unchanged at 1%, as widely expected, saying the need to withdraw its monetary policy stimulus has diminished because of the slowing global economy and heightened financial uncertainty. The bank also toned down the hawkish bias apparent in its July statement, saying it will monitor economic and financial developments in the domestic and global economies alongside the evolution of risk factors and set its policy consistent with the medium-term goal of achieving 2% inflation. In July, the central bank had said some of the "considerable monetary policy stimulus" currently in place will be withdrawn to the extent the economic expansion continues. The Canadian currency strengthened a bit after the decision, with the U.S. dollar falling to 98.81 Canadian cents from 98.99 Canadian cents late Tuesday.