The Bank of Canada has left its overnight target rate unchanged at 0.25%, where it’s been since March 2020.
In a statement accompanying the decision, the Bank addressed concerns about high inflation, saying:
“As supply shortages diminish, inflation is expected to decline reasonably quickly to about 3% by the end of this year and then gradually ease towards the target over the projection period. Near-term inflation expectations have moved up, but longer-run expectations remain anchored on the 2% target.”
The Bank also said overall economic slack has now been absorbed, and that it is ending its “exceptional forward guidance on its policy interest rate.”
Read Full Statement: https://lnkd.in/dmfM-7MJ
Read Monetary Policy Report: https://lnkd.in/dK-yURbB