Interest Rates Stay the Same
By Elli Davis, March 4, 2011
The Bank of Canada did not surprise! Just as expected, its key lending rate remained unchanged at the rate of 1 per cent, where it has been since September. As the Bank again declared in a statement, any future rises will be considered very carefully.
After quite a long period of extremely low rates (0.25 per cent), Canada was the first among the G7 countries to raise interest rates. The Central Bank has announced that the global recovery is going just as expected, for the most part. Canada‘s recovery is, however, a little faster than predicted, with strong consumption growth, expanding business investment and an apparent recovery in exports.
Nothing suggesting a rise in the near future was mentioned in the Bank‘s statement. Honestly (and I think I mentioned it in my last article about the topic), I don‘t believe the interest rates are going to increase very soon either. It‘s likely that the Bank will raise them in the second quarter of this year, but towards its end, I would guess.