Canada: Bank of Canada maintains overnight rate at 1.00%
October 23, 2012
At its 23 October 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 stated that growth in both advanced and emerging economies continues to weaken and that the situation in Europe remains fragile. On the Canadian economy, the Bank acknowledged that while global headwinds continue to restrain economic activity, domestic factors are supporting a moderate expansion. Regarding price developments, the Bank stated that inflation is expected to return to the mid-point of its target of 2.0% plus/minus 1.0 percentage points by the end of 2013. Against this backdrop, the Central Bank maintained its position that over time, some modest withdrawal of monetary policy stimulus will likely be required.