Canada leaves rate unchanged

AP News
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Posted: Mar 01, 2011 9:18 AM
Canada leaves rate unchanged

Canada's central bank is leaving its key interest rate unchanged.

The Bank of Canada, which held its benchmark rate at 1 percent, said Tuesday the global recovery is proceeding in line with the bank's projects.

The central bank reiterated that any further reduction in monetary policy stimulus would need to be carefully considered.

Last June, Canada became the first Group-of-Seven nation to raise interest rates since the global economic crisis. It raised rates again in July and September but has kept the rate unchanged since then.

Most economists had expected central bank Governor Mark Carney to leave the rate unchanged. The Canadian dollar is worth more than the U.S. dollar and a rate hike would have sent the loonie even higher.