23 Oct 2013
BoC interest rate on hold at 1% in October
FXstreet.com (Barcelona) - As expected, the Bank of Canada decided to maintain its target for the overnight rate unchanged at 1% at its October monetary policy meeting.
In a statement released after the decision was made known, the BoC said that it expects the global economy to grow modestly in 2013 but that the uncertain economic conditions could adversely affect Canadian exports and business investment.
In the central bank's assessment, Canada's real GDP growth should pick up from 1.6% in 2013 to 2.3% in 2014 and 2.6% in 2015. It expects „that the economy will return gradually to full production capacity, around the end of 2015.”
The BoC, although not yet alarmed, also pointed out that “the fact that inflation has been persistently below target means that downside risks to inflation assume increasing importance.”
In a statement released after the decision was made known, the BoC said that it expects the global economy to grow modestly in 2013 but that the uncertain economic conditions could adversely affect Canadian exports and business investment.
In the central bank's assessment, Canada's real GDP growth should pick up from 1.6% in 2013 to 2.3% in 2014 and 2.6% in 2015. It expects „that the economy will return gradually to full production capacity, around the end of 2015.”
The BoC, although not yet alarmed, also pointed out that “the fact that inflation has been persistently below target means that downside risks to inflation assume increasing importance.”