Jul 16, 2014
By Bob Komsic
Saying the global economic recovery’s been a ”serial disappointment,” the governor of the Bank of Canada says our economy is still not strong enough to stand on its own.
As a result, Stephen Poloz says it’ll likely need a boost from low interest rates for even longer than he thought three months ago.
The central bank announced today it’s keeping its trend-setting interest rate at 1% – right where it’s been nearly four years.
The bank’s now setting mid-2016 as the date for when it expects the economy to return to firing on all cylinders, suggesting that whatever time frame markets had for the interest rates to rise, it’s likely to happen three months later.
The Bank of Canada has also cut its projections for global growth this year by four-tenths of a point to 2.9%, and it’s cut its outlook for the U.S. by more than a full point to 1.6%.