The Bank of Canada is keeping its trendsetting policy interest rate
at one per cent for a while longer, and likely a whole lot longer.
The central bank said the Canadian economy continues to expand, but
that housing activity is starting to decline and exports remain weak.
Still, the bank said growth will average 2.2 per cent this year, one-tenth more than it had projected in July.
Analysts had been expecting bank governor Mark Carney to soften his
hawkish tone about future interest rate hikes and he obliged, saying
modest withdrawal of stimulus will be required over time.
That suggests the time may be a long way off.
The bank also notes it will consider the health of the household
sector in setting monetary policy, something it hasn't done in previous
interest rates announcements.
Source: The Canadian Press
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