Growth outlook cut, stimulus wind-down postponed
The Bank of Canada held its target overnight interest rate steady at 1.0 per cent on Tuesday, hinting it won’t tighten monetary policy for an extended period. The bank cited concerns about slowing global growth in a statement, noting that Canada’s export-driven economy is vulnerable to Europe’s debt woes, as well as weak demand from the U.S. and emerging markets. The Canadian dollar fell steeply on the news from above-par levels with the U.S. dollar before the bank’s announcement.