Ekonomické zprávy

BoC leaves its benchmark interest rates at 4.50%, as anticipated

The Bank of Canada (BoC) left its benchmark interest rates unchanged at 4.50 percent on Wednesday, as most economists expected. The Bank also reiterated its pledged to continue its policy of quantitative tightening.

In its policy statement, the Canadian central bank noted:

- Canada's economic growth came in flat in Q4 2022, lower than BoC projected. Weaker-than-expected GDP was largely because of a sizeable slowdown in inventory investment;

- Restrictive monetary policy continues to weigh on household spending;

- Labour market remains very tight. Employment growth has been surprisingly strong, unemployment rate remains near historic lows, and job vacancies are elevated;

- Inflation eased to 5.9% in January, reflecting lower price increases for energy, durable goods and some services

- With weak economic growth for next couple of quarters, pressures in product and labour markets are expected to ease. This should moderate wage growth and also increase competitive pressures;

- Overall, latest data remains in line with BoC's expectation that CPI inflation will come down to around 3% in the middle of this year;

- Based on its assessment of recent data, Governing Council decided to maintain its policy rate at 4.5%. Quantitative tightening is complementing this restrictive stance;

- Governing Council will continue to assess economic developments and the impact of past interest rate increases, and is prepared to increase the policy rate further if needed to return inflation to the 2% target;

 - BoC remains resolute in its commitment to restoring price stability for Canadians

Podívejte se také