The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening. The Bank expects the global economy to continue growing at a rate of about 3%, with inflation in most advanced economies easing gradually. The US economy has again proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending. US GDP growth is expected to slow in the second half of this year, but remain stronger than forecast in January. The euro area is projected to gradually recover ... (full story)

The Bank of Canada held its benchmark interest rate steady at 5 per cent on Wednesday, a widely expected decision. Analysts surveyed by Reuters had widely expected the central bank to hold its key overnight rate at 5 per cent for the sixth consecutive meeting. But recent data, including an unexpected slowdown in inflation and a stall in the jobs market, have increased bets that the central bank will come off the sidelines and begin to cut rates in June. "While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months," the central bank noted in a statement released ... (full story)