As widely expected, the Bank of Canada decided to maintain its target for the overnight rate at 1.75% at its May policy meeting. Below are some key takeaways from the BoC's policy statement.
- Recent Canadian economic data are in line with the projections in the Bank’s April Monetary Policy Report (MPR).
- The oil sector is beginning to recover as production increases and prices remain above recent lows.
- Continued strong job growth suggests that businesses see the weakness in the past two quarters as temporary.
- The recent escalation of trade conflicts is heightening uncertainty about economic prospects.
- Removal of steel and aluminum tariffs and increasing prospects for the ratification of CUSMA will have positive implications for Canadian exports and investment.
- Recent data have reinforced Governing Council’s view that the slowdown in late 2018 and early 2019 was temporary.
- In taking future policy decisions, Governing Council will remain data dependent and especially attentive to developments in household spending, oil markets and the global trade environment.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.