Second quarter growth will be less than half of first quarter growth
The Bank of Canada announced Thursday that Canada’s economy is slowing since the initial burst out of recession. The bank highlighted growing risks to the country’s economy in its latest Monetary Policy Report, where it reported the global economy is recovering, but not yet self-sustaining. The bank says this year’s second-quarter growth will be less than half what it was in the first quarter, and will fall further in the third quarter of 2010 to 2.8 per cent. On Tuesday, the bank elected to raise its benchmark overnight lending rate by 25 percentage points to 0.75 per cent, the second consecutive hike after the rate sat at an emergency low of effectively zero since April 2009.