15 Jul 2015
BoC cuts main interest rate to 0.5%
FXStreet (Córdoba) - The Bank of Canada today announced that it is cutting its target for the overnight rate by 25 bps to 0.50% citing a deeper-than-expected impact of the decline in oil prices and weaker-than-expected non-energy exports.
The BoC noted that estimate of growth in Canada in 2015 has been marked down considerably from its April projection and cited global growth slowdown, principally in the United States and China. However, the Bank expects Canada’s growth to resume in the third quarter and begin to exceed potential again in the fourth quarter.
The BoC considers that additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target, which is projected to happen in the first half of 2017.
The BoC noted that estimate of growth in Canada in 2015 has been marked down considerably from its April projection and cited global growth slowdown, principally in the United States and China. However, the Bank expects Canada’s growth to resume in the third quarter and begin to exceed potential again in the fourth quarter.
The BoC considers that additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target, which is projected to happen in the first half of 2017.