BoC leaves policy unchanged, rate at 0.5%

FXStreet (Córdoba) - The Bank of Canada kept its main interest rate at 0.5% on Wednesday, saying that global and domestic economic growth is evolving as expected as well as inflation, but economy continues to face “a complex and lengthy adjustment” to the decline in Canada's terms of trade.

The BoC stated policy divergence is expected to remain a prominent theme. “Meanwhile, commodity prices have declined further. The ongoing terms-of-trade adjustments and shifting growth prospects across different regions are contributing to exchange rate movements. In this context, policy divergence is expected to remain a prominent theme”.

The Bank expects GDP growth to moderate in the fourth quarter of 2015 before moving to a rate above potential in 2016.