At its 17 July monetary policy meeting, the Bank of Canada (BoC) left the target for the overnight rate unchanged at 1.00%, a decision widely expected by market analysts. Monetary authorities have left rates unchanged since September 2010. The Central Bank acknowledged that global economic growth has weakened recently and that some of the risks around the European crisis are materializing, leading to a deterioration in global financial conditions. On the Canadian economy, the Bank stated that while economic growth in the first quarter was slower than expected, "underlying economic momentum appears largely consistent with expectations". Regarding price developments, the Bank said that inflation is expected to fall below the mid-point of its target of 2.0% plus/minus 1.0% in the short terms due to lower gasoline prices, while core inflation should remain around 2.0%. Against this backdrop, the Central Bank maintained its position that some modest withdrawal of the present considerable monetary policy stimulus may become appropriate
Canada Monetary Policy
Bank of Canada remains on hold
July 17, 2012
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Canada Monetary Policy Chart
Note: Target for the Overnight Rate in %.
Source: Bank of Canada (BoC).
Canada Economic News
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.
September 30, 2016
In July, GDP grew a strong 0.5% over the previous month in seasonally-adjusted terms.
September 23, 2016
In August, seasonally-adjusted consumer prices recorded a 0.1% decrease over the previous month, which was down from the flat figure recorded in July and marked the lowest reading in six months.