4 Mar 2015
BoC keeps rate unchanged at 0.75%
FXStreet (Córdoba) - The Bank of Canada decided to keep its target for the overnight rate at 0.75% as expected. The Bank Rate is correspondingly 1% and the deposit rate is 0.5%.
The accompanying statement was upbeat regarding economic conditions. The bank said CPI has fallen as expected but core inflation remains above the 2% of target. Also, BoC said data suggest rotation into stronger growth in non-energy exports while the global economy is evolving in line with January projection.
“The risks around the inflation profile are now more balanced and financial stability risks are evolving as expected in January”, said the BoC in a statement. “At present, we judge that the current degree of monetary policy stimulus is still appropriate and the target for the overnight rate remains at 3/4 per cent”.
The Canadian dollar strengthened on the back of the statement, dragging USD/CAD below 1.2450.
The accompanying statement was upbeat regarding economic conditions. The bank said CPI has fallen as expected but core inflation remains above the 2% of target. Also, BoC said data suggest rotation into stronger growth in non-energy exports while the global economy is evolving in line with January projection.
“The risks around the inflation profile are now more balanced and financial stability risks are evolving as expected in January”, said the BoC in a statement. “At present, we judge that the current degree of monetary policy stimulus is still appropriate and the target for the overnight rate remains at 3/4 per cent”.
The Canadian dollar strengthened on the back of the statement, dragging USD/CAD below 1.2450.