Canada’s key interest rate will end 2011 unchanged.
In as statement, the Bank said European economic performance will be worse than expected, Canadian and U.S. growth are “slightly” better than expected and inflation will “ease”.
It added: “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary stimulus in Canada.
Economists are saying that they don’t sense much of a change in the Bank of Canada’s overall view.
The bond market, which leads fixed mortgage rates, apparently agrees. Yields changed very little in reaction to the Bank of Canada’s decision.
The next Bank of Canada’s rate meeting is January 17, 2012. So status quo for now!
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