Forgot your account information?  |  Create a CME account

Bank of Canada keeps interest rate frozen at one per cent

Published by Steve Coleman on January 17, 2012

The Bank of Canada doesn't expect a full recovery for the Canadian economy until the third quarter of 2013.

The central bank announced Jan. 17 that it plans to keep the country's overnight rate at one per cent. The decision will leave the bank rate at 1.25 per cent and the deposit rate at .75 per cent for the time being.

Ongoing European money problems, slowing growth in China and an expected slowdown in American recovery were all contributing factors to keeping the rate frozen at one per cent.

"With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada," the Bank of Canada said in a news release announcing its latest decision. "The bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the two per cent inflation target over the medium term."

Inflation is expected to reach two per cent by the third quarter of 2013.

Click the following link to read the full Bank of Canada release.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan