Canada maintains overnight rate target at 1pc

OTTAWA, Dec 4 (Xinhua): The Bank of Canada announced Wednesday that it is maintaining its target for the overnight rate at 1 per cent.

Inflation has risen by more than expected and the increase in inflation over the past year is largely due to the temporary effects of a lower Canadian dollar and some sector-specific factors, notably telecommunications and meat prices, the bank said in a release. Underlying inflation has edged up but remains below 2 per cent, it said.

While inflation is at a higher starting point relative to the October Monetary Policy Report (MPR), weaker oil prices pose an important downside risk to the inflation profile, the release said.