In its March 1 interest rate announcement, the Bank of Canada chose to maintain the bank rate at its current level of 1.25%.
The Bank noted on the domestic side that while the economic recovery in Canada is proceeding slightly more quickly than anticipated and consumption growth remains strong, there is evidence that household spending is coming more in line with the growth in household income. With respect to exports, the Bank concluded that while there is early evidence of a recovery in net exports, the export sector continues to face challenges arising from the strength of the Canadian dollar and Canada’s poor relative productivity performance. Overall, the Bank judged that the best course of action was to maintain the bank rate at its current level and indicated as well that “any further reduction in monetary policy stimulus would need to be carefully considered”.
The Bank’s March 1 interest rate announcement can be found on the Bank Web site at http://www.bankofcanada.ca/en/fixed-dates/2011/rate_010311.html. The next scheduled interest rate announcement date is April 12, 2011.