Bank of Canada leaves rates unchanged at 1.0%

June 4, 2014 by Nanakiver3

Highlights of the June 4th 2014 Bank of Canada monetary policy meeting

  • Economy rebounding after pause in Q1 but could have slightly less underlying momentum that previously expected
  • Economy grew at modest pace in Q1 2014 held back by bad weather and supply constraints
  • Temporary effects largely behind rise in inflation to 2% target, Core inflation still significantly below 2%. Downside risks to inflation are as important as before
  • Timing and direction of next rate move to depend on new data. Global financial conditions remain very stimulative
  • Continued signs of soft landing in housing market, constructive evolution of household imbalances. Still expects excess supply in economy to be absorbed gradually