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4 Jun 2014
BoC keeps interest rate steady at 1% in May
FXStreet (Łódź) - As widely expected, the Bank of Canada decided to maintain its target for the overnight rate unchanged at 1% at its May monetary policy meeting. The Bank Rate remained correspondingly at 1.25% and the deposit rate at 0.75%.
In a statement released after the decision was made known, the BoC said that inflation rose towards the 2% target earlier than projected in the April Monetary Policy Report.
The central bank noted the weakness of global growth in the first quarter of the year, adding that Canada grew “at a modest rate” due to “severe weather and supply constraints.”
Finally the BoC commented that “weighing recent higher inflation readings against slightly increased risks to economic growth leaves the downside risks to the inflation outlook as important as before,” while “the risks associated with household imbalances remain elevated” and therefore the current stance of monetary policy is appropriate.
In a statement released after the decision was made known, the BoC said that inflation rose towards the 2% target earlier than projected in the April Monetary Policy Report.
The central bank noted the weakness of global growth in the first quarter of the year, adding that Canada grew “at a modest rate” due to “severe weather and supply constraints.”
Finally the BoC commented that “weighing recent higher inflation readings against slightly increased risks to economic growth leaves the downside risks to the inflation outlook as important as before,” while “the risks associated with household imbalances remain elevated” and therefore the current stance of monetary policy is appropriate.