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Exports, which the Bank of Canada has repeatedly identified as a critical element for sustained GDP growth, fell 1.8 per cent in April from the previous month after recently making gains.
Exports, which the Bank of Canada has repeatedly identified as a critical element for sustained GDP growth, fell 1.8 per cent in April from the previous month after recently making gains.
(Mark Spowart/THE CANADIAN PRESS)

Limp trade data trump rising inflation at central bank

If there were any doubts before, the Bank of Canada made it crystal clear in its interest rate policy statement Wednesday: It isn’t about to let a fattened inflation rate distract it from its prize. And that prize isn’t nearly within grasp.

The central bank, as universally expected, left its key policy rate unchanged at 1 per cent (where it has sat for nearly four years now). And, again, it signalled that this isn’t going to change any time soon (economists’ best guess is mid-2015), and that rate cuts are still not out of the question.