Bank of Canada leaves interest rate at 1 per cent

OTTAWA — The Bank of Canada is keeping its target overnight interest rate unchanged at one per cent, but it says little else in the global and Canadian economic outlook is stable.

The central bank says the global economy is slowing and Europe may actually fall back into a brief recession.

And it says Canada’s economy will have a tougher time getting back to full speed.

The bank says the economy is now expected to have grown by 2.1 per cent when all the data is in for this year and next year will be even tamer, with an expansion of 1.9 per cent.

Both projections are seven tenths of a point lower than it had previously calibrated in July.

The bank says that the economy won’t be back to full speed until the end of 2013, more than four years after the end of the recent recession.

The Canadian Press Tues Oct 25th