Bank of Canada keeps interest rates unchanged

By Ovunc Kutlu

ISTANBUL (AA) - The Bank of Canada on Wednesday kept interest rates unchanged and said it continues its policy of quantitative tightening.

The target for the overnight rate was maintained at 5%, with the bank rate at 5.25% and the deposit rate at 5%.

"The Bank expects the global economy to continue growing at a rate of about 3%, with inflation in most advanced economies easing gradually," the central bank said in a statement.

"Inflation continues to slow across most advanced economies, although progress will likely be bumpy. Inflation rates are projected to reach central bank targets in 2025," it added.

The central bank noted that consumer inflation in Canada slowed to 2.8% in February, with easing in price pressures becoming more broad-based across goods and services.

"However, shelter price inflation is still very elevated, driven by growth in rent and mortgage interest costs," said the statement.

Core measures of inflation, which had been running around 3.5%, slowed to just over 3% in February, according to the bank.

"While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months," it added.