BoC keeps rates steady on downside inflation, household imbalances risks

FXStreet (Łódź) - As expected, the Bank of Canada decided to maintain its target for the overnight rate unchanged at 1% for the 29th running month at its April monetary policy meeting. The Bank Rate remained correspondingly at 1.25% and the deposit rate at 0.75% cent.

In a statement released after the decision was made known, the BoC pointed out that „with underlying inflation expected to remain below target for some time, the downside risks to inflation remain important. At the same time, the risks associated with household imbalances remain elevated.”

“The balance of these risks remains within the zone for which the current stance of monetary policy is appropriate and therefore has decided to maintain the target for the overnight rate at 1 per cent,” the BoC said.