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9 Sep 2015
Bank of Canada leaves rate unchanged at 0.5%
FXStreet (Córdoba) - The Bank of Canada announced its decision to maintain the ts target for the overnight rate at 0.5% as expected. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%.
The BoC said inflation has evolved in line with the bank’s outlook, with the total CPI inflation remains near the bottom of the target range. Economic activity continues to be underpinned by solid household spending and a firm recovery in the United States, the BoC said in a statement.
The bank added that increasing uncertainty about growth prospects for China and other emerging-market economies, in contrast, is raising questions about the pace of the global recovery, contributing to lower commodity prices. However, movements in the CAD are helping to absorb some of the impact of lower commodity prices.
Overall, the BoC thinks risks to financial stability are evolving as expected and the current stance of monetary policy is appropriate.
The BoC said inflation has evolved in line with the bank’s outlook, with the total CPI inflation remains near the bottom of the target range. Economic activity continues to be underpinned by solid household spending and a firm recovery in the United States, the BoC said in a statement.
The bank added that increasing uncertainty about growth prospects for China and other emerging-market economies, in contrast, is raising questions about the pace of the global recovery, contributing to lower commodity prices. However, movements in the CAD are helping to absorb some of the impact of lower commodity prices.
Overall, the BoC thinks risks to financial stability are evolving as expected and the current stance of monetary policy is appropriate.