By www.CentralBankNews.info The Bank of Canada (BOC) maintained its target for the overnight rate at 1.0 percent, as expected, and said “the considerable monetary stimulus currently in place will likely remain appropriate for a period of time after which some modest withdrawal will likely be required” due to continued economic slack, a muted outlook for inflation and a continued improvement in household imbalances.
The BOC’s forward guidance is exactly the same as in April.
Although Canada’s first quarter economic growth is expected to be stronger than the central bank projected in April, the BOC added that growth this year is expected to remain broadly in line wit its forecast from last month.