Interest rate remains locked at one per cent
Posted Mar 8, 2012 7:49 am.
This article is more than 5 years old.
The Bank of Canada is keeping its trendsetting policy rate at a highly simulative level of one per cent for a while longer.
However, the central bank says it believes conditions have improved both at home and abroad since its last policy-setting date in January.
The bank says the European debt crisis is showing signs of stabilizing and the U.S. recovery is proceeding forward, though at a modest rate.
The improvements have had spillover effects on Canada, pumping up commodity prices, exports, and private demand within the country.
The central bank now expects the economy to post a marginally better first three months to the start of this year than the 1.8 per cent advance it had forecast in January.
The bank cautions, however, that some of these improved conditions may be temporary.
