Bank of Canada keeps policy rate unchanged at 1.75%

As widely expected, the Bank of Canada maintained its target for the overnight rate at 1.75%. Below are some key takeaways from the BoC's policy statement.

• Recent data suggest that the slowdown in the global economy has been more pronounced and widespread than the Bank had forecast in its January Monetary Policy Report (MPR). 
• The slowdown in the fourth quarter was sharper and more broadly based.
• Consumer spending and the housing market were soft, despite strong growth in employment and labour income.
• Both exports and business investment also fell short of expectations.
• After growing at a pace of 1.8 per cent in 2018, it now appears that the economy will be weaker in the first half of 2019 than the Bank projected in January.
• Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook.
• With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets, and global trade policy.