4 June 2014

Although some economists were wondering that higher inflation in April will make Stephen Poloz to weaken his concerns about low inflation, but it didn’t happen.

Despite the fact that household debt level was still high, the central bank said: “We can see numerous signs of a soft landing at the real estate market and a necessary evolution of household imbalances.”

Today’s decision didn’t come as a surprise, as analysts surveyed by Reuters last week unanimously predicted no rate changes this time. The median forecast said the first rate hike could be in the third quarter of 2015.

The next Bank of Canada’s rate meeting is on July 16^th.