Bank of Canada Stays Cautious, Disappointing Doves
As had been widely anticipated, the Bank of Canada held its benchmark overnight rate at 5 percent this morning, and language in the accompanying statement, Monetary Policy Report, and prepared comments remained steadfastly neutral, leaving market expectations for a rate cut at the June meeting largely unchanged. It the official statement setting out the decision, policymakers acknowledged weakness in the economy at the end of last year, and noted 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 percent in March”. But updated...