Canada: Bank of Canada maintains overnight rate at 1.00%
March 8, 2012
At its 8 March 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 sounded relatively upbeat, acknowledging ?signs of stabilisation? regarding the sovereign debt crisis in Europe and recognizing improved conditions in the global financial markets. Nevertheless, the Bank stressed that global economic growth will continue to develop below its potential going forward. The Bank emphasized that domestic economic activity remains solid, albeit constrained by external headwinds and the persistent strength of the Canadian dollar. Regarding price developments, the Central Bank confirmed that it expects inflation to remain within its target of 2.0% 1.0% in the medium term.