Canada leaves rate unchanged
TORONTO, Canada
Canada’s central bank left its key interest rate unchanged for the fifth consecutive time, but says the economy is progressing faster than it expected.
The Bank of Canada, which held its benchmark rate at one per cent, yesterday said the global economic recovery is becoming more firmly entrenched. Economists widely expected the central bank to leave the rate unchanged.
The bank projects Canada’s economy will expand by 2.9 per cent in 2011 and 2.6 per cent in 2012.
But the bank warns there are potential trouble spots ahead for the economy, including the elevated price of oil and the strength of the Canadian dollar, which should restrain growth.
Last June, Canada became the first Group-of-Seven nation to raise interest rates since the global economic crisis. It raised rates again in July and September, but has kept the rate unchanged in five consecutive announcements since then.
