The Bank of Canada will continue to watch developments in China closely, given its importance to the global economy and Canada. China’s transition poses risks, and Canada is well positioned to manage them. At the same time, lower prices for oil and other commodities mean that Canada is going through its own complex adjustment.
In March, the Bank of Canada left the policy interest rate unchanged, since the economy was evolving broadly in line with our expectations set out in our January Monetary Policy Report. Next week, we will update our projection and take into account all that has happened since January, including the measures announced in the federal budget.