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BOC no change in rate, slight change in outlook

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As expected the Bank of Canada today announced this morning  it is maintaining its target for the overnight rate at .25 percent; continuing its commitment to keep rates at this level until the end of 2Q2010.  BOC noted that core inflation (Q4) was slightly higher than expected but excess production capacity remains in the system.

The economy is expected to reach full capacity and inflation is expected to hit the upper end of the band in 3Q2011.

Inflation Outlook upside risk – stronger than projected global and domestic demand

Inflation Downside risk – protracted recovery, strong dollar

BOC Inflation gauge – risks are generally balanced with overall inflation risks tilted slightly downward.

Written by thehallmarketreport - Head on a Swivel

January 19, 2010 at 8:48 am

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