The Bank of Canada announced this morning that it will maintain it’s target for the overnight rate at 3% and the operating band for the overnight rate remains unchanged.
The market had been anticipating a rate cut this morning. However, the Bank indicated that since April economic developments have been in line with expectations. While inflation remains a concern and demand by the U.S. of Canadian goods and services has not been favourable, overall global growth has been stronger than expected.
The Bank of Canada’s next scheduled date for announcing the overnight rate target is 15 July 2008. The Bank will publish an updated projection for the economy and inflation, and its assessment of the risks, in the Monetary Policy Report Update on 17 July 2008.
Click here  for the full press release by the Bank of Canada