BoC: Recent softness in inflation is temporary

Key highlights from the Monetary Policy Statement released by the Bank of Canada following the interest rate decision:

• The Bank acknowledges recent softness in inflation but judges this to be temporary
• Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time
• Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed
• As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding
• The Bank estimates real GDP growth will moderate further over the projection horizon, from 2.8 per cent in 2017 to 2.0 per cent in 2018 and 1.6 per cent in 2019