Canada: Bank of Canada keeps interest rates on hold
December 6, 2011
At its 6 December monetary policy meeting, the Bank of Canada (BoC) left the target for the overnight rate unchanged at 1.00%, which was broadly expected by market analysts. The Central Bank reaffirmed its dovish stance, amid heightened volatility in the financial markets and the ongoing sovereign debt crisis in Europe, by stating that ?With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada?. Monetary authorities have left rates unchanged since September 2010. Moreover, the Bank emphasized that economic growth at home remains strong amid solid business investment and better-than-expected household consumption. In addition, the Central Bank confirmed that it expects inflation to decline going forward.