Bank of Canada holds rate at one per cent

Carney sees uncertainty, but no need for expansionary policy

The Bank of Canada held its benchmark interest rate at one per cent on Tuesday, citing slowing global growth and a deepening of the sovereign debt crisis in Europe, the Globe and Mail reports. The Bank noted in a statement that Europe was headed toward a downturn that will be “more pronounced” than estimated only a few weeks ago, when governor Mark Carney said the continent was in for a brief recession. The Bank, however, continues to see no need for lowering rates, as recent economic indicators point to a pick-up of activity in the U.S.

The Globe and Mail