BoC maintains interest rate at 1%, as expected

FXstreet.com (Barcelona) - As widely expected, the Bank of Canada decided to keep its overnight rate unchanged at 1% in May. It emphasized that growth as well as inflation were in line with projections and that a slow economic recovery was in progress.

The BoC added that “With continued slack in the Canadian economy, the muted outlook for inflation, and the constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.”