BoC's Knight says monetary conditions expansionist

The Bank of Canada said domestic monetary conditions "remained expansionist" and held to last month's forecast that inflation in the first quarter would range between 4 and 4.5 percent, Senior Deputy Governor Malcolm Knight said in a prepared speech on Thursday.

"Monetary conditions remain expansionist," Knight said in French. "The growth rate of the CPI (consumer price index) could be between 4 and 4.5 percent in the first quarter."

Canada's key 2.75 percent overnight interest rate is now 1.5