Investing.com – The Bank of Canada left its benchmark interest rate unchanged in January, it announced on Tuesday.
In a statement, that bank said it was leaving its overnight cash rate unchanged at 1.00%, broadly in line with expectations.
The accompanying rate statement released after the announcement said, “Core inflation is projected to edge gradually up to 2% by the end of 2012, as excess supply in the economy is slowly absorbed. Inflation expectations remain well-anchored.”
The statement added that, “The cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance are restraining this recovery in net exports and contributing to a widening of Canada’s current account deficit to a 20-year high.”
Following the announcement, the Canadian dollar was down against its U.S. counterpart, with USD/CAD gaining 0.39% to hit 0.9909.
In a statement, that bank said it was leaving its overnight cash rate unchanged at 1.00%, broadly in line with expectations.
The accompanying rate statement released after the announcement said, “Core inflation is projected to edge gradually up to 2% by the end of 2012, as excess supply in the economy is slowly absorbed. Inflation expectations remain well-anchored.”
The statement added that, “The cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance are restraining this recovery in net exports and contributing to a widening of Canada’s current account deficit to a 20-year high.”
Following the announcement, the Canadian dollar was down against its U.S. counterpart, with USD/CAD gaining 0.39% to hit 0.9909.