Bank Of Canada hikes key lending rate
Published by mMC Admin on June 01, 2010
After much anticipation and speculation the Bank of Canada raised it's key lending rate by a quarter point today to 0.50%. After more than a year at a record level, Mark Carney has become the first Central Banker in the Group of Seven to raise interest rates since the financial turmoil and recession began in 2008.
In a statement on the move, however, Mr. Carney and his rate-setting panel sought to emphasize that investors should not necessarily interpret the increase as the first in an uninterrupted series.
"This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending and the uneven global recovery,’’ the central bank said Tuesday. "Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.’’
The Canadian economy posted a 6.1% annualized growth rate in the first quarter, one of the fastest rates in over a decade. The Central Bank says Canada's recovery is 'unfolding largely as expected' and despite continuing weakness in Europe.
Found in: bank of canada interest rates mortgage rates