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The Bank of Canada holds
Chris Wattie/Reuters
Bank of Canada Governor Stephen Poloz speaks during a news conference in Ottawa, Ontario, Canada, January 18, 2017.
The Bank of Canada held rates at its latest monetary policy meeting.
The central bank held its target for the overnight rate at 0.50%, as most economists were expecting.
“The global economy continues to gain traction and recent developments reinforce the Bank’s view that growth will gradually strengthen and broaden over the projection horizon,” the bank said in the accompanying statement.
“As anticipated, growth in the United States during the first quarter was weak, reflecting mostly temporary factors,” it continued. “Recent data point to a rebound in the second quarter. The uncertainties outlined in the April MPR continue to cloud the global and Canadian outlooks.”
Ahead of the announcement, Deutsche Bank’s Canada economist argued that the bank would likely hold again given that, on balance, not much has changed since the last meeting. Back in April, the central bank also held rates, and noted that although global economic growth had been strengthening, there was still “considerable uncertainty” surrounding the outlook.
The Canadian dollar was up by 0.3% at 1.3475 per US dollar around 10:05 a.m. ET after being little changed ahead of the announcement.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
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