Bank of Canada holds rate, cuts growth forecast
The Bank of Canada acknowledged Tuesday that the weakening global economy is slowing growth in this country more than previously thought, but it still expects moderate growth.
The Bank of Canada announced its decision to leave the main interest rate at 1% on Tuesday, making this the longest period it has remained unchanged since the 1950s.
The wording of Tuesday's statement was surprising to some, considering recent changes to the mortgage lending process and the current global economic state. Many were expecting a longer time line for increasing borrowing costs, or possibly even lowering interest rates.
Tuesday's statement also contains the revised outlook for the Canadian economy, stating 2012 to come in at 2.1% and 2.3% for 2013, a decrease from the previous forecast of 2.4% for both years.