The Bank of Canada said on Tuesday that it would hold its target for the overnight rate at 4.5%.
The decision was widely expected because of deteriorating US economic conditions and the Canadian dollar's appreciation.
The central bank confirmed this: "The combined effect of a weaker US outlook and a higher assumed level of the Canadian dollar implies that net exports will exert a more significant drag on the economy in 2008 and 2009 than previously expected."
Revised projections put US econom
- Making the rules and breaking the mould (Allan Meltzer: 1928–2017)
- BoE economists criticise DSGE inflation modelling
- Indonesian deputy Perry on revolutionising monetary and financial policy
- Commission should have power to order CCPs to relocate to EU – Cœuré
- Indonesian banks will switch to reserves averaging in July