BCREA ECONOMICS NOW
Bank of Canada Interest Rate Announcement - January 23, 2013
It may be a new year but it is the
same story this morning from the Bank of Canada which once again held its
target for the overnight rate at 1 per cent. The statement released in
support of the interest rate decision noted that the global economic outlook
is weaker than the Bank previously projected, though risk of a severe
external shock to the economy has diminished. As a result, the slowdown in
the Canadian economy in the second half of 2012 was more pronounced than the
Bank had anticipated. The Bank has revised its estimate for economic growth
in 2012 lower, to 1.9 per cent, and now forecasts 2 per cent growth in 2013
before an acceleration to 2.7 per cent in 2014. Importantly, the Bank has
also shifted its expectation that the economy will reach full capacity out to
the second half of 2014. On inflation, the Bank expects growth in consumer
prices to run significantly below its 2 per cent target for much of 2013
before gradually rising to target in 2014.
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Interest Rate Announcement
Blog by Century 21 Amos Realty | January 23rd, 2013