22 Jan 2014
BoC holds rates in January, points to downside risks to inflation
FXstreet.com (Łódź) - As expected, the Bank of Canada decided to maintain its target for the overnight rate unchanged at 1% at its January monetary policy meeting.
In a statement released after the decision was made known, the BoC expressed concerns about weak inflation, saying that it has moved below the 2% target and that “the path for inflation is now expected to be lower than previously anticipated for most of the projection period.”
As for the GDP, the BoC projected that it would accelerate from 1.8% in 2013 to 2.5% in 2014 and 2015. “This implies that the economy will return gradually to capacity over the next two years,” the central bank said.
The BoC added that the direction its next move would depend on data.
In a statement released after the decision was made known, the BoC expressed concerns about weak inflation, saying that it has moved below the 2% target and that “the path for inflation is now expected to be lower than previously anticipated for most of the projection period.”
As for the GDP, the BoC projected that it would accelerate from 1.8% in 2013 to 2.5% in 2014 and 2015. “This implies that the economy will return gradually to capacity over the next two years,” the central bank said.
The BoC added that the direction its next move would depend on data.