OTTAWA — The Bank of Canada kept its key interest rate target on hold at five per cent on Wednesday. Here is the text of the central bank's decision:
The Bank expects the global economy to continue growing at a rate of about three per cent, with inflation in most advanced economies easing gradually. The U.S. economy has again proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending. U.S. GDP growth is expected to slow in the second half of this year, but remain stronger than forecast in January. The euro area is projected to gradually recover from current weak growth.
In Canada, economic growth stalled in the second half of last year and the economy moved into excess supply. A broad range of indicators suggest that labour market conditions continue to ease. Employment has been growing more slowly than the working-age population and the unemployment rate has risen gradually, reaching 6.1 per cent in March. There are some recent signs that wage pressures are moderating.
Overall, the Bank forecasts GDP growth of 1.5 per cent in 2024, 2.2 per cent in 2025, and 1.9 per cent in 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SooToday - 🏆 8. / 85 Read more »