The Bank of Canada held its target for the overnight rate steady at 1.00%; also holding the Bank Rate at 1.25% and the deposit rate at 0.75%. The Bank commented in its statement: "To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be withdrawn, consistent with achieving the 2.0 percent inflation target. Such reduction would need to be carefully considered".
Previously the Bank of Canada also held the target interest rate unchanged at its June meeting; it's last move was a 25 basis point increase to 1.00% in September last year. Canada reported annual CPI inflation of 3.7% in May, up slightly from 3.3% in April, the same as March, according to Statistics Canada. The Bank of Canada has an inflation target of 2 percent. The Bank next meets to review monetary policy settings on the 7th of September 2011.