As widely expected the Bank of Canada left rates unchanged at 1% at the end of yesterday’s monetary policy meeting. In the statement released at the end of the meeting the BoC slightly raised GDP estimates for both 2011 (from 2.3% to 2.4%) and 2012 (from 2.6% to 2.8%). The BoC also confirmed that the output gap will close by the end of 2012. The CB also indicated that “net exports are projected to contribute more to growth going forward, supported by stronger U.S. activity and global demand for commodities” but said that “the cumulative effects of the persistent strength in the Canadian dollar and Canada’s poor relative productivity performance are restraining this recovery in net exports”. The BoC is not expected to resume a tightening monetary policy before the end of Q2 ’11.