As you may or may not know, when the Bank of Canada holds its key interest rate meetings, they typically follow their interest rate decision with a commentary.

That commentary can be a good tell tale read into future interest rate expectations and predictions.

 

That said, below is a great article from the Wall Street Journal titled, 5 Takeaways from the Bank of Canada Rate Decision.

1. More Upbeat on Exports

The Bank of Canada said an increasing number of export sectors appear to be “turning the corner towards recovery,” though it said it wants to see more improvement on that front. Policy makers want exports to help power Canada’s economic growth.

2. Rates Will Stay Unchanged for Longer

The Bank of Canada is stuck in neutral gear in terms of the direction of interest rates, even as debate about U.S. rate hikes heats up.  That’s in part because business investment remains sluggish and the export recovery is still in its early days.

3. Housing Clouds Linger

The central bank said housing-market activity has been stronger than anticipated, and that risks associated with household imbalances–Bank of Canada speak for Canadians’ high household debt –haven’t diminished.

4. Mixed Picture Outside Canada’s Borders

The Bank of Canada struck a more positive tone about the U.S. economy, saying that a “solid recovery seems to be on track.” That is key for Canada, which sends some 75% of its exports south of the border. But it noted ongoing concerns about Europe, where the recovery seems to be faltering as the Ukraine crisis weighs on confidence.

5. Inflation Not a Big Worry

Inflation isn’t as much of a concern because it’s close to the central bank’s 2% target.

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