Bank of Canada keeps target for the overnight rate at 2 1/2 per cent - Bank of Canada
Central bank: boc | Type: statement | Date: 2005-05-15

FOR IMMEDIATE RELEASE
Media Relations
Ottawa, Ontario
May 25, 2005
Global and Canadian economic data received since the last interest rate announcement on 12 April have been broadly in line with expectations. The Bank's outlook for the Canadian economy through to the end of 2006 is unchanged from that in the April
Monetary Policy Report (MPR)
. Growth this year and next is still expected to come primarily from domestic demand. Consistent with the analysis in the
, the Canadian economy is expected to move back to its production capacity in the second half of 2006, with core inflation projected to return to 2 per cent around the end of next year. In line with this outlook, a reduction of monetary stimulus will be required over time.
The outlook remains subject to both upside and downside risks. These risks relate largely to global developments, the associated relative price changes, and the adjustment of the Canadian economy.
Information note:
Monetary Policy Report Update
will be published on 14 July 2005.
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