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Bank of Canada holds rates steady, citing weaker growth

Recovery still susceptible due to European debt crisis


 

The Bank of Canada opted to hold interest rates steady on Tuesday, citing slightly weaker-than-expected domestic growth and the risk of global financial ripple effects from Europe’s debt crisis. The Bank kept its overnight lending target at 1 per cent for the second consecutive time since October, a move widely anticipated by analysts. The Bank said in a statement that it would have to see evidence that global and domestic recoveries were gaining traction before further withdrawing stimulus to the economy with an interest rate increase. Canada’s third-quarter economic performance of 1 per cent annualized growth was below the Bank’s forecast, which may have prompted it to adopt a more dovish tone despite a higher-than-expected inflation rate at 2.4 per cent.

Reuters


 
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Bank of Canada holds rates steady, citing weaker growth

  1. "… a move widely expected by analysists." because they work at/for the banks and the banks tell Carney what to set it at, so, let's not go around thinking these analysists are smart or something.

  2. It is too bad that they raised rates earlier in the year. If they had not then perhaps economic growth may have hit the target.

  3. Maintaining the housing ponzi scheme takes precedence over incurring massive federal debt. The generation X & Y's should be protesting en mass.

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