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Canada leaves key rate unchanged

Canada leaves key rate unchanged

Canada's central bank left its key interest rate unchanged on Wednesday and said the need to boost the rate has diminished.
The Bank of Canada, which held its benchmark rate at 1 percent, previously suggested it would hike rates this year. But the bank said the global economic outlook has deteriorated in recent weeks.
It said the European sovereign debt crisis has intensified, while the U.S. recession was deeper and its recovery shallower than previously reported.
As a result, the central bank said, "the need to withdraw monetary policy stimulus has diminished" and the rate won't be raised now.
The decision to leave interest rates unchanged was widely expected.
The bank has left the rate unchanged since September 2010. Last summer, Canada became the first nation in the Group of Seven nation to raise interest rates since the global economic crisis began.
Canada has experienced a better market rebound than other nations in the G-7, which groups industrialized nations. There was no mortgage meltdown or subprime lending crisis in Canada, and its banks are rated among the soundest in the world.
The Canadian government also has plans to balance the country's budgets by 2014-15 and has urged other countries to reduce their deficits.


Updated : 2021-03-08 21:21 GMT+08:00