Bank of Canada says low interest rates 'appropriate for a period of time'

OTTAWA – The Bank of Canada is sticking to its low interest rate policy and says it will likely continue to do so for some time.

The bank is keeping the trendsetting overnight rate at one per cent, where it has been since September 2010.

But in a change from its previous forward-looking guidance, it says such a low level will likely remain in place for a period of time.

The bank says in a statement that it believes household debt levels are stabilizing, removing some of the worries about low rates for a long time.

On the economy, the bank says there is considerable slack, but it still believes growth will pick up this year.

In January, the bank projected growth rates of 2.0 per cent and 2.7 per cent for 2013 and 2014.