The Bank of Canada kept its benchmark interest rate steady at one per cent today, continuing its longest stretch of inaction on record.
Canada's central bank last changed its target for the overnight rate in late 2010, when it was raised to its current level.The bank announces its latest policy decision on interest rates every six weeks, and the bank has now stood pat for 26 consecutive policy meetings.
In a statement accompanying Wednesday's decision, the bank said it expects inflation to remain lower than previously anticipated for the next little while. It also said it expects a soft landing in the housing market.
The bank wasn't expected to raise or lower rates on Wednesday, but watchers are closely parsing the statement to gauge which direction the bank is heading in — a rate hike to cool inflation, or a rate cut to stimulate the economy.
Wednesday's statement suggests the bank is leaning toward the former.
The loonie plunged in the immediate aftermath of the news, shedding about a third of a cent to trade at 90.70 cents US.
- Bank of Canada keeps interest rate at 1%
- Bank of Canada to keep rates steady next week; hike in third quarter 2015
- Bank of England keeps rates, stimulus on hold
- Bank of Canada says inflation rise hasn't shaken neutral stance
- Loonie flat ahead of rate announcement
- Bank of Canada says moving to ensure no benchmark manipulation
- Loonie lower ahead of rate announcement
- Poloz's priority is keeping loonie in check
- BoC keeps overnight rate at 1 per cent
- Fed minutes show change of criteria in setting rates
Russia has expressed outrage after at least three people were killed at a pro-Russian checkpoint in eastern Ukraine.
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