This morning the Canadian Central bank announced that it is keeping its benchmark overnight rate unchanged at 0.25%. The BoC has released a positive view on global recovery, but conditional to inflation.
The most telling line in the statement was the following:
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target. In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility, consistent with the framework outlined in the April MPR.