The Bank of Canada (BoC) announced its interest rate decision on Wednesday. The BoC kept its interest rate unchanged at 0.75%. This decision was expected by analysts.
The central bank noted that there is still persistent slack in the Canadian economy and that the U.S. economic growth was weak in the first quarter. But the BoC expects the Canadian economy to bounce back in the second quarter.
Canada's central bank said that the consumer price inflation is near the bottom of the central bank's 1.0% - 3.0% range due to falling energy prices, while the core consumer price inflation is above 2% due to a depreciation of Canadian dollar.
The BoC said that consumption in Canada performed relatively well due to lower oil prices.
The central bank also said that risks to the outlook for inflation have not changed and risks to financial stability are evolving as expected.
According to the central bank, financial conditions for Canadian households and firms remain highly stimulative.
The BoC decided that the current monetary policy remains appropriate.