Canada's central bank kept its benchmark interest rate at 1 percentTuesday, which has been unchanged since September 2010, the longestperiod it has stayed neutral since the 1950s. "The outlook for global economic growth has weakened in recentweeks," said the Bank of Canada in a statement about its latestpolicy decision. "Some of the risks around the European crisis are materializing andrisks remain skewed to the downside," which it said is leadingglobal financial conditions to a "sharp deterioration." "While the U.S. economy continues to expand at a modest pace, andeconomic activity in emerging-market economies is slowing a bitfaster and a bit more broadly than expected," according to thebank. It also noted that the "modest" global momentum and "heightened"financial risk aversion have reduced commodity prices. "To the extent that the economic expansion continues and thecurrent excess supply in the economy is gradually absorbed, somemodest withdrawal of the present considerable monetary policystimulus may become appropriate." Doug Porter, deputy chief economist with BMO Capital Markets, saidin an analysis that in light of "the sudden re-accumulation ofheavy European clouds," the Bank of Canada will remain in a holdingpattern and the next interest rate hike could occur in the firstquarter of 2013 at the earliest. Canada's housing activity has been stronger than expected andhouseholds continue to add to their debt burden amid modest incomegrowth, according to the bank. It said recovery in net exports will likely remain weak in light ofmodest external demand and the country's weakened competitiveness,including the persistent strength of the Canadian dollar. The statement "struck a very prudent balance, acknowledging theweaker global economic outlook, but also reminding markets who hadpriced in a chance of a rate cut by year end, that barring a globalcatastrophe, the next interest rate move will be up, not down,"said Toronto-Dominion (TD) Bank economist Leslie Preston in a note. "The Bank of Canada is in the unenviable position of having tobalance the reality of a closed output gap domestically with thehit to confidence and growth from the market's downturn anddeteriorating conditions in Europe." Economic growth in Canada for the first quarter of 2012 was just1.9 percent, below the Bank of Canada's 2.5-percent forecast. The bank will next announce its interest-rate decision on July 17,the day before it is scheduled to provide an update on its outlookfor Canadian economy and inflation. The e-commerce company in China offers quality products such as China Skin Analyzer Machine , Tattoo Removal Machine, and more. For more , please visit Tattoo Removal Machine today!
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