Paula Siemans of INVIS - SIEMENS GROUP writes:
The Bank of Canada left the overnight unchanged, and will likely not move rates until the latter part of this year. Please find Mr. Carney's comments below.
"The global economic recovery is under way, supported by continued improvements in financial conditions and stronger domestic demand growth in many emerging-market economies. While the outlook for global growth through 2010 and 2011 is somewhat stronger than the Bank had projected in its October Monetary Policy Report, the recovery continues to depend on exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.
Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked up further in the fourth quarter. Total CPI inflation turned positive in the fourth quarter and the core rate of inflation has been slightly higher than expected in recent months. Nevertheless, considerable excess supply remains, and the Bank judges that the economy was operating about
3 ¼ per cent below its production capacity in the fourth quarter of 2009.
Canada’s economic recovery is expected to evolve largely as anticipated in the October MPR, with the economy returning to full capacity and inflation to the 2 per cent target in the third quarter of 2011. The Bank projects that the economy will grow by 2.9 per cent in 2010 and 3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.
On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar that could act as a significant further drag on growth and put additional downward pressure on inflation. While the underlying macroeconomic risks to the projection are roughly balanced, the Bank judges that, as a consequence of operating at the effective lower bound, the overall risks to its inflation projection are tilted slightly to the downside."
Todays Best Rates:
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Contact Paula with you Mortgage questions!
Paula Siemens -AMP
INVIS - SIEMENS GROUP
902-777 West Broadway Ave.
Ph:604-351-7438 x 4
Bank of Canada Announcement
Blog by Karen Ashby | January 20th, 2010