Bank of Canada maintains overnight rate target at 1/4 per cent
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.
The Bank reiterated its conditional commitment to hold the current policy rate until the end of the second quarter of 2010. The Bank is of the opinion that the global economic recovery is underway. Total CPI inflation turned positive in the fourth quarter and the core rate of inflation has been slightly higher than expected in recent months. Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.
The Bank projects that the economy will grow by 2.9 per cent in 2010 and 3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.
The next scheduled date for announcing the overnight rate target is 2 March 2010.
Kind regards
Jacqueline Baker
www.mypowermortgage.com
604.724.6982
