Bank of Canada maintains overnight rate target at 1/2 per cent
Here is a summary of the press release:
-- Inflation in Canada is on track to return to 2 per cent in 2017 as the complex adjustment underway in Canada’s economy proceeds.
-- In this context, the forecast for the global economy has been marked down slightly from the Bank’s April Monetary Policy Report (MPR)
-- In Canada, the quarterly pattern of growth has been uneven
-- While the fundamental elements of the Bank’s projection are similar to those presented in April, the forecast has been revised down in light of a weaker outlook for business investment and a lower profile for exports
-- The Bank forecasts that the output gap will close somewhat later than estimated in April, towards the end of 2017
-- While inflation has recently been a little higher than anticipated, largely due to higher consumer energy prices, it is still in the lower half of the Bank’s inflation-control range
-- The Bank’s Governing Council judges that the overall balance of risks remains within the zone for which the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.