Bank of Canada's Cote says no predetermined interest rate path

Thu Feb 19, 2015 1:52pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

MONT TREMBLANT, Quebec Feb 19 (Reuters) - The Bank of Canada has no predetermined path for interest rates and will make its next rate decision on March 4 on the basis of economic conditions at the time, Deputy Governor Agathe Cote said on Thursday.

In a question-and-answer session after a speech, Cote also said the central bank was not concerned that big banks did not pass on the entirety of its Jan. 21 rate cut to their customers through the prime rate, saying what was important was the cumulative effect on financial pricing across the board.

Asked about the bank's inflation target of 2 percent within a range of 1 to 3 percent, she said central banks had coalesced around this number but there was nothing magical about it. The central bank is studying this year whether to adjust that target.

(Reporting by Randall Palmer and Allison Lampert; Editing by Paul Simao)