Bank of Canada Leaves Interest Rate at 1%

The Bank of Canada has left the key overnight interest rate unchanged at one per cent amid slower than expected U.S. growth, but acknowledged that it will “eventually” have to go higher. Economists had widely expected the Bank of Canada to leave rates unchanged in the announcement.

The latest decision on interest rates comes amid a growing credit crisis in Europe and fiscal gridlock in the United States. However, the Canadian economy has appeared to be on track with three consecutive months of job growth and signs of inflation.

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