Bank of Canada leaves rates unchanged at 1.0%

Highlights of the June 4th 2014 Bank of Canada monetary policy meeting

• Economy rebounding after pause in Q1 but could have slightly less underlying momentum that previously expected
• Economy grew at modest pace in Q1 2014 held back by bad weather and supply constraints
• Temporary effects largely behind rise in inflation to 2% target, Core inflation still significantly below 2%. Downside risks to inflation are as important as before
• Timing and direction of next rate move to depend on new data. Global financial conditions remain very stimulative
• Continued signs of soft landing in housing market, constructive evolution of household imbalances. Still expects excess supply in economy to be absorbed gradually