Bank of Canada keeps Interest Rates at 1 percent

2013-07-19 | 12:13:58

Newly-appointed Bank of Canada Governor Stephen Poloz held the bank’s trend-setting overnight rate at 1%, and signaled that consumers and homebuyers need not worry about borrowing costs shooting up anytime soon.


Poloz, who took over from Mark Carney at Ottawa’s central bank last month, said global business conditions remain modest and Canada’s “economic growth is expected to be choppy in the near term.”


The bank cited the unknown negative economic impact of a string of disasters, including flooding in Calgary and Toronto, and the devastating train accident in Quebec.


With the Canadian economy not expected to be firing on all cylinders until mide-2015, Poloz had not been expected to deviate quickly from Carney’s low-rate policy. The central bank has kept its overnight rate, which influences borrowing costs charged by commercial banks, unchanged at 1% since 2010.


Click here to read the full article in The Star.