By CentralBankNews.info
Canada’s central bank held its target rate for the overnight rate steady at 1.0 percent, as widely expected, and said inflation is still expected to remain “well below” the bank’s target for some time so “the downside risks to inflation remain important,” while the risks from high household debt have not materially changed.
The Bank of Canada (BOC), which has maintained its rate since September 2010, added that “the timing and direction of the next change to the policy rate will depend on how new information influences this balance of risks.”
The BOC softened its earlier concern over inflation following an acceleration of inflation in January and December. In its previous statement in January, the central bank said the “downside risks to inflation have grown in importance.”