Bank of Canada maintains overnight lending rate

The Bank of Canada has announced, yet again, the overnight lending rate will remain at one per cent.

The rate has been one per cent since September 2010. The bank said its global economic outlook remains upbeat and expects investment and exports will outshine consumer spending as the main driver of Canadian economic growth as the
United States economic recovery gains momentum.

“The Bank identified a weaker than expected upturn in exports as being the most significant domestic risk to its inflation outlook,” said a release from the Canadian Real Estate Association.

“It also repeated its concerns about Canadian household indebtedness while indicating that a soft landing in the Canadian housing market and a stabilization of debt-to-income ratios continue to unfold in line with its expectations.”

The Bank of Canada plans on following economic and inflation data to determine the “direction of future policies”. It’s believed the rate won’t increase until well into 2015. The next rate announcement is June 4.

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