The Bank of Canada announced that it would maintain its overnight rate of 1 percent this morning, thanks to disproportionate growth in the Canadian economy. According to the official release from the Bank, economic growth in Canada was slightly slower than expected in the first quarter of 2012. Even so, the underlying economic momentum appears largely consistent with projected expectations. As such, the latest release from the Bank appeared to ease up on the possibility of an imminent rate hike. However, the overall tone of the piece did little to dispel the fact that rates will increase eventually. Continue reading
Tag Archives: Overnight Rate
Bank of Canada Maintains Overnight Rate
The Bank of Canada left its main interest rate untouched yesterday, maintaining a 1 percent overnight rate for the 13th consecutive review. While Governor Mark Carney painted a bright economic picture, rumblings of increased interest rates are becoming more and more prevalent.
Overall, the economic momentum in Canada is slightly firmer than the Bank expected back at the beginning of the year. The Bank has projected the Canadian economy to grow by 2.4 percent in both 2012 and 2013 before moderating to 2.2 percent in 2014. As such, the Bank anticipates that the economy will return to full capacity in the first half of 2013. Continue reading