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Bank of Canada keeps Interest Rates at bottom, says Economy bouncing back
OTTAWA - Canada`s economy is bouncing back faster than previously thought, the Bank of Canada said Thursday.
Backing up its controversial declaration last July that the recession is over, the central bank now says that not only has growth returned to the Canadian economy after three quarters of sharp contraction, it is growing faster than even it thought likely.
In July, the bank had projected the economy would rebound by 1.3 per cent in the current quarter and another three per cent in the final three months of the year - or about 2.15 per cent on average.
It gave no new estimates, but the revision means that the central banks believes the economy will perform better than the 2.3 per cent contraction it had earlier forecast, and possibly better than the three per cent growth it expected for next year.
The new projections, however, haven`t made the bank change its mind about keeping interest rates at the lowest possible level of 0.25 per cent until at least July, despite repeating its now familiar warning that the persistent strength of the loonie could throw an unwelcome spanner into the works.
Read the full article here.
OTTAWA - Canada`s economy is bouncing back faster than previously thought, the Bank of Canada said Thursday.
Backing up its controversial declaration last July that the recession is over, the central bank now says that not only has growth returned to the Canadian economy after three quarters of sharp contraction, it is growing faster than even it thought likely.
In July, the bank had projected the economy would rebound by 1.3 per cent in the current quarter and another three per cent in the final three months of the year - or about 2.15 per cent on average.
It gave no new estimates, but the revision means that the central banks believes the economy will perform better than the 2.3 per cent contraction it had earlier forecast, and possibly better than the three per cent growth it expected for next year.
The new projections, however, haven`t made the bank change its mind about keeping interest rates at the lowest possible level of 0.25 per cent until at least July, despite repeating its now familiar warning that the persistent strength of the loonie could throw an unwelcome spanner into the works.
Read the full article here.