The Bank of Canada maintained the key lending rate unchanged at 1.00%. However the central bank noted that the "considerable monetary policy stimulus in place will be eventually withdrawn,". The Bank also noted the strength of the Canadian Dollar: "The persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices,"
Canada reported inflation of 3.3% in April, the same as March, according to Statistics Canada. The Bank of Canada has an inflation target of 2 percent. Previously the Bank of Canada held the target interest rate unchanged at its April meeting. The Bank next meets to review monetary policy settings on the 19th of July 2011.