...no signal when hike will come
OTTAWA – 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.
The bank’s overnight target rate affects the prime lending rate at Canada’s big banks and in turn the rates for variable rate mortgages and lines of credit.
The central bank last raised rates in September 2010.
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