Bank of Canada interest rate announcement - BOC to hold line on rates

OTTAWA - The Bank of Canada is expected to hold the line on interest rates when the announcement is made at 9 a.m. Tuesday.

Most economists and markets agree that Governor Mark Carney will leave the rate at one per cent until the end of the year and likely well into 2012 or longer.

And, any thought Carney might have had of cutting the rate likely went out the window last week when Statistics Canada reported inflation rose to 3.2 per cent in September, above the bank's one-to-three per cent acceptable range.

A few weeks ago, the bank was expected to dramatically downgrade its official growth projections of 2.8 and 2.6 per cent for this year and next.

But with economic data coming in better-than-expected in recent weeks, including September's surprising 61,000 jobs gain, the bank may not be as glum about prospects going forward.

The Canadian Press and 680News staff Oct 25, 2011

Asif Khan, ABR
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Re/Max All-Stars Realty Inc., Brokerage
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