The Bank of Canada kept its overnight interest rate target unchanged at 5% at today’s meeting, while the federal funds rate remained at 5¼% and the deposit rate at 5%. The central bank continues to maintain its policy of quantitative tightening. The global economy is expected to continue to grow at a rate of around 3%, while inflation in advanced economies is expected to moderate slightly. The US economy has proved stronger than expected, in particular thanks to support from resilient consumption and robust business and government spending. The euro area is slowly recovering from weak growth, and global oil prices have also risen significantly, by around $5 above January forecasts. Bond yields have risen since January, but tightening corporate credit spreads and rising equity markets have contributed to easing overall financial conditions.