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13.06.2018 04:52
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OTTAWA Men's Brown ECCO Leather Shoes UK Outlet , July 16 (Xinhua) -- The Bank of Canada said Wednesday it is maintaining its target for the overnight rate at 1 percent, citing recent higher inflation and slower than expected global economic growth.


The bank rate is correspondingly 1.25 percent and the deposit rate is 0.25 percent, said the central bank in a press release.


Total CPI inflation has moved up to around the 2 percent target in recent months, sooner than expected, it said Men's ECCO Biarritz Classic Wing Tip Leather Shoes BLACK UK Outlet , adding that core inflation has also increased but remains below 2 percent.


The bank attributed recent higher inflation to the temporary effects of higher energy prices, exchange rate pass-through and other sector-specific shocks, rather than to any change in domestic economic fundamentals.


Over the next two years, inflation is projected to fluctuate around 2 percent as these temporary effects ease and the downward pressure on inflation from economic slack and heightened retail competition gradually dissipates, it added.


"The global economy is on a lower growth track than was foreseen at the time of the April Monetary Policy Report issued by the bank ... Nevertheless Men's ECCO Intrinsic 2 Slip On Black UK Outlet , the bank continues to project that global growth will gather momentum as these headwinds abate," the bank said.


"Given the downgrade to the global outlook, economic activity in Canada is now projected to be a little weaker than previously forecast. However, the bank still expects that the lower Canadian dollar and a projected strengthening in global demand will lead to a pickup in Canadian exports and business investment and, eventually Men's ECCO Jack Slip On BLACK UK Outlet , a more sustainable growth track," it noted.


Consequently, the bank said the country's economy is expected to reach full capacity around mid-2016, a little later than anticipated in April.


"For the inflation target to be achieved on a sustained basis in 2016, the economy must reach and remain at full capacity Men's ECCO Classic Moc 2.0 Loafer MINK UK Outlet ," the bank said.


"Closing the output gap over the time frame described above is reliant on continued stimulative monetary policy and hinges critically on stronger exports and business investment," it said.


"At the same time, the risks associated with household imbalances, while evolving in a constructive

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