On Tuesday July 20, 2010, The Bank of Canada raised its benchmark interest rate to 0.75%, the second time this year.
“The Bank expects the economic recovery in Canada to be more gradual than it had projected in its April MPR, with growth of 3.5 per cent in 2010, 2.9 per cent in 2011, and 2.2 per cent in 2012. This revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada”
The BoC stated that the decision still leaves a considerable amount of monetary stimulus in place to achieve a 2% CPI target considering that the overall excess supply in Canada is significant, the relative level of domestic spending, and the uneven global recovery.
Bank Of Canada:
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