Lending rate will stay at 1%

(June 01, 2011)

The Bank of Canada (BoC) today announced that they would be keeping the overnight lending rate at 1%.  As such, there will be no movement in Prime. 
This announcement was widely expected given that the global and US economy are still making very modest gains with some peripheral European ecnomies still posing some risks and the fact that inflation is well within the target of 2% as set by the BoC.
The next announcement for the target overnight rate is set for July 19 and the expectation, currently, is that the BoC will not move on the overnight rate then either.