BOC remained interest rate unchanged

At Wednesday's meeting the BOC remained key interest rate unchanged at 0.5%. Members of the bank noted a gradual economic recovery after the shock from oil market collapse.

The regulator kept its forecast on GDP growth in 2015 at 1.1%, taking into account economic statistics for the second half of the year. However, forecast for 2016 and 2017 was significantly cut, because of negative impact of raw materials market weakening and reduction of investments.

Devaluation of a national currency and cut of key interest rate twice in this year caused a significant decline of Canadian dollar.  The bank admitted these measures as efficient to support economy. These measures were also aimed to support non-primary sector, which is very important now.

The bank noted rate of core inflation was at 2%. It may last the whole 2016, and the regulator will keep it at this rate.