For the second time since taking over as Bank of Canada Governor in June, Stephen Poloz has maintained the overnight interest rate at one per cent.
Photo Credit: Adrian Wyld/CP

Bank of Canada maintains interest rate at 1%

As expected, the Bank of Canada made no change in its key policy interest rate Wednesday (September 4), leaving it at the one per cent level it has been at for the past three years.

In a statement released Wednesday the bank wrote: “The global economy continues to expand broadly as expected, but its dynamic has moderated.”

And focusing on Canada: “Uncertain global economic conditions appear to be delaying the anticipated rotation of demand in Canada towards exports and investment. While the housing sector has been slightly stronger than anticipated, household credit growth has continued to slow and mortgage interest rates are higher, pointing to a continued constructive evolution of household imbalances.”

“As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate.”

The next scheduled date for announcing the overnight rate target is 23 October 2013.

More information:
Bank of Canada statement – Bank of Canada maintains overnight rate target at 1 per cent – here
CBC News – Bank of Canada stands pat on key interest rate – here

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