Bank of Canada keeps rate at 0.25%

Mark Carney stays true to his promise and keeps interest rates low.



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Got high credit card debt? Looking to buy a new house? Then you can thank Mark Carney today for not raising interest rates.

The Bank of Canada announced today that it was keeping rates at 0.25%, staying true to its promise that it won’t increase rates until mid-2010 at least.

Carney added that economy was performing slighty worse than he predicted three months ago. “Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked up further in the fourth quarter,” said Carney. “Nevertheless, considerable excess supply remains, and the bank judges that the economy was operating about 3.25% below its production capacity in the fourth quarter of 2009.”

The BoC also said that economy contracted by 2.5% in 2009, slightly worse than it’s 2.4% projection.

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