BOC: keeps rates unchanged at 1.25%; trade “growing source of uncertainty”

The Bank of Canada maintained its target for the overnight rate at 1 1/4 per cent at the March 2018 policy meeting. The Bank Rate is correspondingly 1 1/2 per cent and the deposit rate is 1 per cent.

Here are some of the key highlights from the accompanying monetary policy statement.

   •  Trade developments are an important and growing source of uncertainty
   •  Higher rates likely warranted over time, but some continued policy accommodation will likely be needed to keep economy close to potential, inflation on target
   •  Repeats will remain cautious in considering future policy adjustments; guided by incoming data
   •  US government spending, tax cuts expected to boost US growth in 2018, 2019
   •  Global growth solid and broad-based
   •  Canada's Q4 GDP slower than expected due to higher imports; 2017 GDP in line with banks projections
   •  Gain in imports reflected stronger business investment, which adds to economies capacity
   •  Data shows pulling Ford of housing demand ahead of new mortgage rules, other measures
   •  Will take time to fully assess impact of regulations on housing demand and prices
   •  Continues to monitor economy sensitivity to higher rates: household credit growth has decelerated for 3 months
   •  Implications of federal government budget will be incorporated into forecasts in April
   •  Core inflation measures have edged up, consistent with an economy operating near capacity
   •  Wage growth has firm but lower than typical in economy with no labor market slack