Date Posted: March 7, 2017
The Bank of Canada has maintained the key interest rate target at 1.25% in light of recent trade policy developments. Latest talks regarding NAFTA negotiations have ended without resolution and an impending tariffs proposed by the US have left some economic uncertainty.
“While the economic outlook is expected to warrant higher interest rates over time, some continued monetary policy accommodation will likely be needed to keep the economy operating close to potential and inflation on target,” the central bank said in its statement. “Governing Council will remain cautious in considering future policy adjustments,” the statement said.”