Bank of Canada maintains overnight rate target at 1 ¼ per cent - GIC Wealth Management

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FYI/Blog Bank of Canada maintains overnight rate target at 1 ¼ per cent

Bank of Canada maintains overnight rate target at 1 ¼ per cent

The Bank of Canada today maintained its target for the overnight rate at 1 ¼ per cent. The Bank Rate is correspondingly 1 ½ per cent and the deposit rate is 1 per cent.

Inflation in Canada is close to 2 per cent as temporary factors that have been weighing on inflation have largely dissipated, as expected. Consistent with an economy operating with little slack, core measures of inflation have continued to edge up and are all now close to 2 per cent. The transitory impact of higher gasoline prices and recent minimum wage increases will likely cause inflation in 2018 to be modestly higher than the Bank expected in its January Monetary Policy Report (MPR), returning to the 2 per cent target for the rest of the projection horizon.

To read full article please click on the link below:

https://www.bankofcanada.ca/2018/04/fad-press-release-2018-04-18/