Canada's central bank leaves key rate unchanged

AP News
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Posted: Dec 08, 2009 10:54 AM

Canada's central bank is holding its key interest rate at a record low 0.25 percent and is reiterating its expectation that it will keep the rate there until the middle of next year.

The Bank of Canada said Tuesday that while significant fragility remains, global economic developments have been slightly more positive and the global outlook has improved modestly from the bank's expectation in October.

The rate decision was expected.

The bank also renewed its warning about the negative impact of a high Canadian dollar versus the U.S. currency.

More than 70 percent percent of Canada's exports go to the United States. A higher Canadian dollar hurts exports.

The Canadian dollar was down 0.52 U.S. cent to 94.46 cents following the Bank of Canada announcement.