The Bank of Canada announced today that it is maintaining its target for the overnight rate at 1.75 per cent.
For Canada, the Bank was projecting a temporary slowdown in late 2018 and early 2019. However, the slowdown in the fourth quarter was sharper and more broadly based. After growing at a pace of 1.8 per cent in 2018, it now appears that the economy will be weaker in the first half of 2019 than the Bank projected in January.
Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range. Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook. With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets, and global trade policy.
The next scheduled date for announcing the overnight rate target is April 24, 2019.
To learn more: Bank of Canada official press release