Canadian overnight interest rate unchanged at 1%
The Bank of Canada (BofC) surprised no one this morning by leaving overnight interest rates unchanged. Although the tone of the central bank's press release was more positive than previous ones, it looks like its going to take more good news before the bank will start hiking rates again. The Bank of Canada monetary policy committee left the Canadian overnight interest rate at 1.0 per cent today – the same level it has been at since the bank last raised rates on Sept. 8. The bank specifically noted that both U.S. and European economic growth has been stronger than it had anticipated but that the domestic Canadian economy has unfolded as expected.
All in all, owing largely to events outside of Canada (the strengthening U.S. economy), the central bank is sounding slightly more hawkish than before. However, with inflation still looking fairly benign, it's probably going totake a material upswing in the global economy for the bank to raise rates at its next meeting on March 1.
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