No Change In Interest Rates

The central Bank of Canada held its key interest rate unchanged (on June 4th) at 0.25 percent. The decision to leave interest rates unchanged came as no surprise because the central bank said in April it would leave the overnight target at 0.25 per cent until the middle of next year, provided there isn't surprise increase in inflation. The central bank reaffirmed its pledge to hold rates where they are for almost another year. It made no mention of unconventional monetary easing, such as printing money $$$$$ to buy securities & bonds etc., upholding its view that further stimulus is not required any time soon. The sharp rise in the value of the Canadian dollar on exchange markets could hurt efforts by the Bank of Canada and Canadian governments to restart the country's economy, central bank governor Mark Carney said in his statement. “If the unprecedentedly rapid rise in the Canadian dollar, which reflects a combination of higher commodity prices and generalized weakness in the U.S. currency, proves persistent, it could fully offset these positive factors,” the Bank of Canada said in a statement today from Ottawa.