Bank of Canada Leaves Rates at 1%

The Bank of Canada has left its trendsetting interest rate at one per cent, unchanged since it last raised rates in September. The central bank says global conditions have improved slightly since its last full report in October, and so have Canada’s economic prospects. But it also says risks remain and the high dollar and low productivity will continue to weigh on Canadian exports and output growth.

The bank expects the economy to grow a moderate 2.4 per cent this year and only slightly better next year at 2.8 per cent. It says the economy won’t return to full capacity until the end of 2012.

Source: The Canadian Press

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