Central bank keeps target rate at 4 1/4 per cent
July 11, 2006
OTTAWA (CP) - The Bank of Canada today announced that it will not be raising its target for the overnight rate from 4 1/4 per cent and, as such, the Bank Rate will remain at 4 1/2 per cent.
Essentially, the Bank of Canada decided to leave the rate unchanged given that the outlook for economic growth and inflation remained largely unchanged from the April Monetary Policy Report (MPR).
In the Bank of Canada's opinion, leaving the rate unchanged is deemed to be consistent with achieving the inflation target over the medium term. It is the intention of the Bank to continue and monitor global and domestic and financial developments which are relative to their projections.
Information note:
The Bank of Canada's next scheduled date for announcing the overnight rate target is September 6, 2006.
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