Investing.com – The Bank of Canada left its benchmark interest rate unchanged at 1.00%, following three consecutive monthly increases, it announced on Tuesday.
In a statement, that bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.
The accompanying rate statement released after the announcement said, “While the Bank expects that private demand in advanced economies will become sufficiently entrenched to sustain the recovery, the combination of difficult labour market dynamics and ongoing deleveraging in many advanced economies is expected to moderate the pace of growth relative to prior expectations”.
The statement added that the BoC “expects the Canadian economic recovery to be more gradual than it had projected in its July Monetary Policy Report, with growth of 3.0% in 2010, 2.3% in 2011, and 2.6% in 2012.”
Following the announcement, the Canadian dollar was down against its U.S. counterpart, with USD/CAD soaring 1.48% to hit 1.0318.
In a statement, that bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.
The accompanying rate statement released after the announcement said, “While the Bank expects that private demand in advanced economies will become sufficiently entrenched to sustain the recovery, the combination of difficult labour market dynamics and ongoing deleveraging in many advanced economies is expected to moderate the pace of growth relative to prior expectations”.
The statement added that the BoC “expects the Canadian economic recovery to be more gradual than it had projected in its July Monetary Policy Report, with growth of 3.0% in 2010, 2.3% in 2011, and 2.6% in 2012.”
Following the announcement, the Canadian dollar was down against its U.S. counterpart, with USD/CAD soaring 1.48% to hit 1.0318.