{"id":12147,"date":"2010-09-08T17:39:21","date_gmt":"2010-09-08T21:39:21","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=12147"},"modified":"2010-09-08T17:39:21","modified_gmt":"2010-09-08T21:39:21","slug":"boc-increases-on-rate-25bp-to-1-00-prime-follows","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=12147","title":{"rendered":"BoC Increases O\/N Rate 25bp to 1.00%; Prime Follows"},"content":{"rendered":"

The Bank of Canada has announced<\/a>:<\/p>\n

that it is raising its target for the overnight rate by one-quarter of one percentage point to 1 per cent. The Bank Rate is correspondingly 1 1\/4 per cent and the deposit rate is 3\/4 per cent.
…<\/b>
The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected in its July Monetary Policy Report (MPR), largely reflecting a weaker profile for U.S. activity. Inflation in Canada has been broadly in line with the Bank’s expectations and its dynamics are essentially unchanged.<\/p>\n

Against this backdrop, the Bank decided to increase its target for the overnight rate to 1 per cent. As a result of monetary policy measures taken since April, financial conditions in Canada have tightened modestly but remain exceptionally stimulative. This is consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.<\/p>\n

Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.<\/p><\/blockquote>\n

Bloomberg comments<\/a>:<\/p>\n

The increase was the bank\u2019s third since June, and most economists, including Durocher, now forecast Governor Mark Carney will keep the rate at 1 percent until April.<\/p><\/blockquote>\n

Prime followed:<\/p>\n