At its meeting on 18 January, the Bank of Canada (BoC) left the target for the overnight rate unchanged at 1.00%, in a move widely anticipated by the market. The decision was made amid an improved outlook for the Canadian economy in 2011 due to better short-term prospects in the United States. However, risks to the economic recovery ?remain elevated?. Policy makers expressed confidence that the ?recovery in Canada is proceeding broadly as anticipated?. However, monetary officials also conveyed concerns about the strength of the Canadian dollar and poor productivity, which limit a full recovery in the external sector and drive the current account deficit to a 20-year high. The Central Bank also confirmed that inflationary pressures ?remain subdued?. As the Central Bank maintained its dovish tone for a third consecutive meeting, further tightening of monetary policy is seen unlikely in the near future, although analysts anticipate interest rate hikes in the second quarter of the year. The next policy meeting is scheduled for 1 March.
Canada Monetary Policy
Central Bank leaves interest rates unchanged for a third consecutive meeting
January 18, 2011
Looking for forecasts related to Monetary Policy in Canada? Download a sample report now.
Canada Economic News
October 21, 2016
In September, seasonally-adjusted consumer prices increased 0.2% from the previous month, which contrasted the 0.1% decrease recorded in August and marked the highest print in three months.
October 19, 2016
At its 19 October policy meeting, the Bank of Canada (BoC) decided to maintain its target for the overnight rate at 0.50%, despite a weaker inflation and growth outlook.
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.