Bank of Canada Rate Announcement – No Change to Interest Rates
Written by Piper Birks on January 14, 2012.
The Bank of Canada announced this morning that interest rates will remain unchanged for the 11th consecutive time over the past 15 months. The last time the BOC made a change to the overnight lending rate was in September 2010 with a moderate increase of 0.25 per cent.
The overnight rate currently sits at 1 per cent. The Bank Rate is 1.25 per cent and the deposit rate is 0.75 per cent.
The news is really no news at all, given that nearly all industry professionals and top economists were anticipating no change. But what should be of interest to consumers is the justification behind the decision. Heres why the Bank of Canada is keeping interest rates where they are.
- The outlook for the global economy is getting worse.
- The recession in Europe is expected to be deeper and last longer than originally anticipated.
- The BOC was coy in suggesting they had faith Europe could get a handle on the situation: although this assumption is clearly subject to downside risks.
- The U.S. gr
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