The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent. Recent Canadian economic data are in line with the projections in the Bank’s April Monetary Policy Report (MPR), with accumulating evidence that the slowdown in late 2018 and early 2019 is being followed by a pickup starting in the second quarter. The oil sector is beginning to recover as production increases and prices remain above recent lows. Meanwhile, housing market indicators point to a more stable national market, albeit with continued weakness ... (full story)

The Bank of Canada held interest rates steady as expected on Wednesday, but said there was increasing evidence that the economic slowdown was temporary and that growth accelerated in the second quarter. The central bank left its overnight rate at 1.75% and repeated language that current rates remain “appropriate” with inflation expected to remain around the 2% target in coming months. On April 24, the bank cut its growth forecast for the first half of 2019 to 1.2% from 1.7% and removed wording about the need for future hikes. The central bank repeated that its future policy decisions will remain data dependent. ... (full story)