Bank of Canada leaves key rate unchanged at 0.50%, as expected

The Bank of Canada announced that it is maintaining its target for the overnight rate at 0.5%, as widely expected. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%.

Meanwhile, the BoC cautioned that the economic adjustment to lower energy prices continues but is "proving to be uneven."

In the accompanying statement the BoC noted that economic growth during the first quarter was roughly in line with projections, but it said growth will be “weaker than predicted” in the second quarter because of wildfires in Alberta, which prompted to curb oil production.

“Inflation is roughly in line with the Bank’s expectations. Total CPI inflation has risen recently, largely due to movements in gasoline prices, but remains slightly below the 2 per cent target,” BoC said.