Economic Outlook of the Bank of Canada

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By Elli Davis, January 22, 2010

A brand new monetary policy report of the Bank of Canada brought us some positive news! The Bank seems to be quite confident about the world economic recovery. The outlook for growth on a global scale is stronger now than it was in October 2009, the report claims.

Regarding Canada, according to the report, our country is on a very good way to full recovery. Still, there is still a noticeable excess supply. As for risks to the inflation protection, those are now tilted to the downside a little, which is a result of monetary policy operating at the lower bound, says the Bank.

I have already mentioned this earlier this week, but I will say it again – the bank expects the Canadian economy to grow by 2.9 percent this year and by 3.5 percent in 2011. Also, until the end of June 2010 its benchmark interest rate remains the same, 0.25 percent.

Well, what can I say? Everything seems to be going just right in the recovery and the predictions for the future are pretty good too. That’s the way I like it!