- Joined
- Mar 24, 2009
- Messages
- 16,743
OTTAWA - The Bank of Canada has brightened its outlook for the Canadian economy, saying Tuesday it now thinks this year`s downturn won`t be as deep as previously forecast and 2010 growth will be stronger.
The bank did as expected in keeping its key policy rate at the historic 0.25-per-cent low and repeating a pledge to keep it there until the spring of 2010.
But in a surprising move, the central bank said it is reducing the amount of money it is making available to chartered banks in order to support borrowing and lending because the need for such extraordinary measures is waning.
And it came as close as it has ever done to predicting the end of the most severe recession since the Second World War.
"There are increasing signs that economic activity has begun to expand in many countries," the central bank said in an accompanying statement.
"(In Canada,) stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring domestic demand," it added.
Read the full article here.
The bank did as expected in keeping its key policy rate at the historic 0.25-per-cent low and repeating a pledge to keep it there until the spring of 2010.
But in a surprising move, the central bank said it is reducing the amount of money it is making available to chartered banks in order to support borrowing and lending because the need for such extraordinary measures is waning.
And it came as close as it has ever done to predicting the end of the most severe recession since the Second World War.
"There are increasing signs that economic activity has begun to expand in many countries," the central bank said in an accompanying statement.
"(In Canada,) stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring domestic demand," it added.
Read the full article here.