BoC: Recent softness in inflation is temporary

Eren Sengezer FXStreet

Key highlights from the Monetary Policy Statement released by the Bank of Canada following the interest rate decision:

The Bank acknowledges recent softness in inflation but judges this to be temporary
Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time
Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed
As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding
The Bank estimates real GDP growth will moderate further over the projection horizon, from 2.8 per cent in 2017 to 2.0 per cent in 2018 and 1.6 per cent in 2019

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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