Off the wire
• Li, Xu complete gold treble in China national swim meet  • Indonesia unveils massive stimulus packages  • Manneken Pis to wear traditional Chinese suit on Oct. 13  • Top discipline inspector: party members should live up to superior line of values  • Impoverished area in SW China to offer 15 years of free education  • 44 ministerial secretaries sworn in as Sri Lanka's national gov't begins work  • Norway, Russia to sign agreement on notification of nuclear incidents  • Rights body accuses members of Indian military, police officers of abuses in Indian-controlled Kashmir  • High-level delegation from Pakistan arrives in India for talks on border situation  • Two killed as gunmen attack military camp in Burundi: official  
You are here: 　 Home

Canada's central bank keeps overnight rate target at 0.5 percent

Xinhua, September 10, 2015 Adjust font size:

The Bank of Canada announced Wednesday that it is maintaining its target for the overnight rate at 0.5 percent and its bank rate is correspondingly 0.75 percent and the deposit rate 0.25 percent.

Inflation has evolved in line with the outlook in the bank's July monetary policy report. Total consumer inflation remains near the bottom of the target range, reflecting year-over-year price declines for consumer energy products.

Core inflation has been close to 2 percent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector-specific factors.

The dynamics of GDP growth in Canada outlined in July's monetary policy report also remain intact. The stimulative effects of previous monetary policy actions are working their way through the Canadian economy.

Canada's resource sector continues to adjust to lower prices for oil and other commodities, with some spillover to the rest of the economy. These adjustments are complex and are expected to take considerable time.

Economic activity continues to be underpinned by solid household spending and a firm recovery in the United States, with particular strength in the sectors of the U.S. economy that are important for Canadian exports.

Increasing uncertainty about growth prospects for emerging-market economies, in contrast, is raising questions about the pace of the global recovery.

This has contributed to heightened financial market volatility and lower commodity prices. Movements in the Canadian dollar are helping to absorb some of the impact of lower commodity prices and are facilitating the adjustments taking place in Canada's economy.

While the overall export picture is still uncertain, the latest data confirm that exchange rate-sensitive exports are regaining momentum.

Meanwhile, risks to financial stability are evolving as expected. Taking all of these developments into consideration, the bank judges that the risks to the outlook for inflation remain within the zone for which the current stance of monetary policy is appropriate. Therefore, the target for the country's overnight rate remains at 0.5 percent. Endi