Bank of Canada holds key rate steady, but withdraws earlier policy not to raise rates until July

The Bank of Canada has left its key interest rate untouched, but given notice that its pledge to keep rates stable until the end of June is no longer in effect.

The news drove the Canadian dollar sharply higher, jumping 1.52 cents in early trading to just above parity with the U.S. dollar.

The bank has left its overnight rate at 0.25 per cent.

But the bank’s governing council has also released statement saying that “global economic growth has been somewhat stronger than projected.”

In light of the strengthening recovery, the bank has withdrawn the commitment it made a year ago that it would keep interest rates stable until the end of this year’s second quarter, or June 30. The commitment was conditional on inflation remaining under control....(Read More)

Article Source: The Star