Bank of Canada ups economic outlook
The Bank of Canada boosted its outlook for the economy for this year and 2010, while keeping a key interest rate unchanged on Tuesday.
The bank left the overnight rate steady at 0.25 per cent, and repeated its statement that it plans to leave the rate unchanged until the middle of 2010.
“There are now increasing signs that economic activity has begun to expand in many countries in response to monetary and fiscal policy stimulus and measures to stabilize the global financial system,” the bank said. “However, the recovery is nascent.”
The bank said it now expects the economy to contract by 2.3 per cent this year, a slight improvement from the three per cent contraction it forecast in April.
For 2010, growth is now projected to hit three per cent, an improvement from April’s outlook of 2.5 per cent growth. The bank did moderate its 2011 outlook to 3.5 per cent from its April forecast of 4.7 per cent growth. [Read more →]
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