BOC remains monetary policy unchanged

The BOC remained its monetary policy unchanged at the last meeting on Wednesday. A key interest rate remained at 0.5%. It was also said that economic adaptation to low oil prices was quite irregular.

The bank noted that economic growth in Q1 had matched the expectations. However the bank warned that GDP would grow in the next quarter less than expected on the background of serious fires in Alberta province. These conditions forced companies in oil and gas sector to cut their output.

Consequences from this natural cataclysm may put negative impact to economic growth in the next quarter by 1.25%. The economy is expected to recover in Q3 on the background of recovery works and return of output to standard levels.

Global economic situation is developing according to forecasts, it is noted in the BOC. It is expected that the country will take this year a way of stable economic growth along with the US, a main trading partner.