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15 Apr 2015
BoC leaves rate unchanged at 0.75%
FXStreet (Córdoba) - The Bank of Canada decided at today’s meeting to leave its benchmark rate unchanged at 0.75%, as widely anticipated.
Regarding the state of the economy, the BoC said the economy have stalled in the first quarter due to the impact of lower oil prices. However, the Bank anticipates real GDP growth will rebound in the second quarter and expects it to reach 1.9% in 2015 (down from 2.1%), 2.5% in 2016 (up from 2.4%), and 2.0% in 2017.
Regarding inflation, the BoC said the core rate has remained near the 2.0% “as the temporary effects of sector-specific factors and pass-through of the lower Canadian dollar have offset the disinflationary forces from slack in the economy”. The Bank expects both headline and core inflation to be near 2.0% on a sustained basis around the end of 2016.
The next scheduled date for announcing the overnight rate target is 27 May 2015.
Regarding the state of the economy, the BoC said the economy have stalled in the first quarter due to the impact of lower oil prices. However, the Bank anticipates real GDP growth will rebound in the second quarter and expects it to reach 1.9% in 2015 (down from 2.1%), 2.5% in 2016 (up from 2.4%), and 2.0% in 2017.
Regarding inflation, the BoC said the core rate has remained near the 2.0% “as the temporary effects of sector-specific factors and pass-through of the lower Canadian dollar have offset the disinflationary forces from slack in the economy”. The Bank expects both headline and core inflation to be near 2.0% on a sustained basis around the end of 2016.
The next scheduled date for announcing the overnight rate target is 27 May 2015.