Bank of Canada holds steady on interest rate

Rate stays at 1 per cent amid uncertain economy

Canada’s central bank announced on Tuesday that it would keep the country’s interest rate at one per cent, holding the lending rate steady for the sixth time in a row. According to numbers released last week by Statistics Canada, the Canadian economy didn’t meet its growth expectations during the first quarter of the year, expanding at an annual rate of 3.9 per cent. The Bank of Canada also said that, while they are opting to keep the interest rate steady, policymakers should be wary of inflation, which occurs as a result of having a low benchmark-lending rate. As the expected economic recovery moves forward, economists from Scotiabank are expecting the central bank to raise the interest rate, which has been held at one per cent since September 2010.

CBC News


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