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17 Jul 2013
BoC: Overnight rate target left unchanged at 1%
FXstreet.com (Barcelona) - The Bank of Canada kept the target for the overnight rate at unchanged at 1% in July. The Bank Rate remained at 1.25% while the deposit rate was maintained at 0.75%.
According to the official release “economic growth is expected to be choppy in the near term, owing to unusual temporary factors” but it should nevertheless be supported by a projected pickup in exports and consumer spending.
Meanwhile, inflation is expected to remain subdued in the nearest future and rise to the 2% target by mid-2015.
Therefore, the BoC will maintain the current monetary stimulus in place “As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively.”
According to the official release “economic growth is expected to be choppy in the near term, owing to unusual temporary factors” but it should nevertheless be supported by a projected pickup in exports and consumer spending.
Meanwhile, inflation is expected to remain subdued in the nearest future and rise to the 2% target by mid-2015.
Therefore, the BoC will maintain the current monetary stimulus in place “As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively.”