The Bank of Canada announced today that it is keeping its key rate unchanged, downgrading the economic forecast and no longer referencing the need for future rate hikes. The Bank noted that low oil prices and transportation constraints continue to affect the energy sector. Trade policy uncertainty and the global slowdown are also weighing negatively on other sectors. Weaker housing and consumer spending have also contributed to slower growth.
Even though the economy is expected to improve, the Bank deems that an accommodative interest rate policy continues to be warranted. The next rate-setting day is Wednesday, May 29th.