4 Sep 2013
BoC keeps interest rate unchanged at 1% in September
FXstreet.com (Barcelona) - According to forecasts, the Bank of Canada decided to maintain its its target for the overnight rate unchanged at 1% at its September monetary policy meeting.
In a statement released after the decision was made known, the BoC said that the global economy continued to improve, but the pace of recovery has slowed down. It took note of the increased financial volatility in emerging markets, which might hurt global growth and suggested that “uncertain global economic conditions appear to be delaying the anticipated rotation of demand in Canada towards exports and investment.”
Therefore the BoC decided that “as long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate.”
In a statement released after the decision was made known, the BoC said that the global economy continued to improve, but the pace of recovery has slowed down. It took note of the increased financial volatility in emerging markets, which might hurt global growth and suggested that “uncertain global economic conditions appear to be delaying the anticipated rotation of demand in Canada towards exports and investment.”
Therefore the BoC decided that “as long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate.”