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- Bank of Canada keeps its interest rate unchanged at 0.50% in May
Bank of Canada keeps its interest rate unchanged at 0.50% in May
The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%, noting that the current monetary policy was still appropriate. This decision was expected by analysts.
The BoC noted that the Canadian economic growth in the first quarter was in line with the BoC's forecasts, adding that the growth in the second quarter would be weaker than previously expected due to wildfires in Alberta. According to the central bank, the economy was expected to rebound in the third quarter due to higher oil prices.
The central bank also said that business investment and intentions remained disappointing.
According to the central bank, inflation was evolving as anticipated by the BoC, and rose due to higher oil prices.
Risks around the inflation are roughly balanced, the central bank said.
The BoC added that household vulnerabilities increased.
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