Bank of Canada to ‘look through’ rising fuel prices
Central bank on hold as inflation hovers close to target, but more rate hikes remain likely
The Bank of Canada kept its headline interest rate on hold today (May 30), saying it would “look through” the effects of higher gasoline prices, but indicating more hikes were likely on the way.
The target for the key overnight rate remains at 1.25%, with inflation hovering close to target, at 2.2% in April. Policymakers noted inflation was likely to be “a bit higher in the near term than forecast in April” due to gasoline price rises, but stressed they would look past this “transitory impact”
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