Tuesday, May 31, 2011

Bank of Canada Holds Rate at 1.00%

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  However the central bank noted that the "considerable monetary policy stimulus in place will be eventually withdrawn,".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.

1 comment:

  1. The canadian economy it's going forward, it's a strength dollar!