The Bank of Canada left its overnight rate unchanged at 1.00% as expected, and maintained its forward guidance that rates are likely to stay low for "a period of time" after which "some modest withdrawal of stimulus will likely be required.” Today's statement was little changed from April's
Experts at RBC Economics opined, "we expect the Bank will maintain the overnight rate at 1.0% for the remainder of 2013 and only start to reduce the amount of stimulus once the economy is growing fast enough to reduce the output gap and the inflation rate is approaching the 2% target.
"Our view remains that the Bank is likely to remain on hold until the second half of 2014."
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