Highlights of the Bank of Canada rate decision
- No change in 0.25% overnight rate, as expected
- Both the global and Canadian economies are evolving broadly in line with the scenario outlined in July
- The rebound in the United States has been stronger than expected, while economic performance among emerging markets has been more mixed
- BOC continues to expect the recuperation phase to be slow and choppy as the economy copes with ongoing uncertainty and structural challenges.
- CPI expected to remain well below target in the near term
- Repeats that BOC “will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved”
There is almost nothing notable here. There were no chances in policy and the language on forward guidance is entirely unchanged.
There were some CAD bids waiting in the wings until after the decision as it plays catch-up with the other commodity currencies. I expect more of that in the minutes ahead.