Bank of Canada keeps key rate steady, cuts growth forecast
By Erica Alini - Wednesday, January 23, 2013 - 0 Comments
Surprise, surprise…
The target overnight rate stays at one per cent, where it’s been since September 2010.
The Bank of Canada cut its growth forecast for 2013 to two per cent from 2.3 per cent. It added it expects the economy to return to full potential later than earlier anticipated, in the second half of 2014 rather than late 2013.
The bank also said the outlook for the global economy now looks “slightly weaker” than expected, with Europe still in recession and the U.S. recovery bogged down by efforts to reduce household and public debt, as well as continued uncertainty over fiscal policy.
Here’s the text of the press release:
