Uncertainty prompts Carney's hike - MoneySense

Uncertainty prompts Carney’s hike

Bank of Canada’s overnight rate moves up another quarter of a percent, while the bank’s Governor cites uncertainty about the future.

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For the third straight time Bank of Canada Governor Mark Carney raised the nation’s benchmark interest rate by another quarter of a percent today, Wednesday Sept. 8, 2010, but left himself room to manoeuvre. He concedes that conditions in Canada remain “exceptionally stimulative,” but is quoted in a Globe and Mail article as saying that the overall economic climate is fraught with “unusual uncertainty.”

This lift puts the Bank of Canada’s overnight rate at 1%. Carney stated that future moves will depend on developments around the world and how this will impact Canada’s economy.

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