Tuesday, January 18, 2011

Bank of Canada Maintains Overnight Target Rate at 1.00%

The Bank of Canada held the overnight target rate at 1.00%, with the Bank Rate also remaining at 0.25% and the deposit rate at 0.75%. The Bank signalled no intentions to ease policy but also noted that "Inflation expectations remain well-anchored" as a relatively solid recovery still has plenty of spare capacity (excess supply) to use up; with the Bank not expecting core inflation to reach its target 2% until later in 2012.
 

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