9 Mar 2016
BoC keeps overnight rate unchanged at 0.5%
The Bank of Canada decided to leave its target for the overnight rate at 0.5% as widely expected. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%.
"Recent data indicate that the U.S. economic expansion remains broadly on track," the Bank of Canada said in a statement. "At the same time, the low level of oil prices will continue to dampen growth in Canada and other energy-producing countries."
However the BoC added that recent bounce in oil prices and other commodities lead to Canadian dollar appreciation from its recent lows. “With these movements, both the price of oil and the exchange rate have averaged close to levels assumed in the January MPR”.
BoC also said inflation in Canada is evolving broadly as anticipated. “All things considered, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy.”
"Recent data indicate that the U.S. economic expansion remains broadly on track," the Bank of Canada said in a statement. "At the same time, the low level of oil prices will continue to dampen growth in Canada and other energy-producing countries."
However the BoC added that recent bounce in oil prices and other commodities lead to Canadian dollar appreciation from its recent lows. “With these movements, both the price of oil and the exchange rate have averaged close to levels assumed in the January MPR”.
BoC also said inflation in Canada is evolving broadly as anticipated. “All things considered, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy.”