Although there had been speculation that the recent strength of the Canadian dollar would mean a change in interest rates, the Bank of Canada’s April 12 announcement left interest rates unchanged. The prime rate therefore remains at 3%.
In making its announcement, the Bank indicated that the global economic recovery was, overall, proceeding well. While economic growth in Canada has been stronger than expected, and the Bank expects inflation for the second quarter of 2011 to reach 3%, the result of the Bank’s assessment of all of these competing factors was a decision to maintain rates at their current levels. The Bank noted, as it has in the past, that “any further reduction in monetary policy stimulus would need to be carefully considered.”
The press release announcing the Bank’s decision can be found on the Bank of Canada Web site at http://www.bankofcanada.ca/en/fixed-dates/2011/rate_120411.html.