Bank of Canada kept the main interest rate unchanged

From the Bank of Canada decided to keep its benchmark interest rate unchanged today at 1.00%, which coincided with the expectations of market participants. The bank gave a statement in which he emphasized that in time you will need to download some incentives for monetary policy. However, this depends on the global and national economic development, and the imbalance in the housing sector. The bank expected the economy to return to normal levels at the end of 2013, GDP is foreseen to reach 2.2% in 2012, 2.3% in 2013 and 2.4% in 2014, core inflation is a lower than the level in recent months, but is expected to reach 2 percent in mid-2013. It was added that the global economy limited activity in the country, and national factors support a moderate development. Expected growth of the economy is due to the consumption and business investment. It also provides activity in the housing sector to fall from its highest levels, and household debt continue to rise and stabilize at the end of 2014.
It is envisaged that exports began to increase gradually, but remain below pre-recession levels until at least the first half of 2014, the negative impact on exports has a strong Canadian dollar and the effects of global monetary policy. The prices of oil and other commodities are rising in Canada in recent months, taking into account the adverse global slowdown. The bank added that financial conditions globally have improved, but confidence remains fragile. Economic growth in the U.S. continues at a moderate pace, and that China and other fast developing economies slowed more than expected. Certainly Europe is in recession and factors indicate that this will continue. After the announcement of the decision, the Canadian dollar rose and the currency pair USD / CAD reached 0.9908 from 0.9975 just before the news.