3 Dec 2014
Bank of Canada maintains rates, inflation stronger on CAD weakness
FXStreet (London) - The Bank of Canada has announced that it is holding its overnight rate at 1 percent. The Bank Rate is held at 1.25 percent and the deposit rate at 0.75 percent.
In a statement accompanying the decision, the Bank said that inflation has increased more than expected, and continues to be driven by a weaker Canadian dollar.
Canadian exports have benefitted from a strengthening US economy, despite broader global weakness. The report also highlighted the declines in oil prices on both supply and demand considerations.
The BoC stated that Canada's economy is showing signs of a broadening recovery. Stronger exports are beginning to be reflected in increased business investment and employment.
However the central bank cautioned that the lower profile for oil and certain other commodity prices will weigh on the Canadian economy.
In a statement accompanying the decision, the Bank said that inflation has increased more than expected, and continues to be driven by a weaker Canadian dollar.
Canadian exports have benefitted from a strengthening US economy, despite broader global weakness. The report also highlighted the declines in oil prices on both supply and demand considerations.
The BoC stated that Canada's economy is showing signs of a broadening recovery. Stronger exports are beginning to be reflected in increased business investment and employment.
However the central bank cautioned that the lower profile for oil and certain other commodity prices will weigh on the Canadian economy.