To the surprise of no one, the Bank of Canada left their key lending rate the same today in their meeting.
Reading into the details of their statement they re-iterated their commitment to maintain the rate at current levels until the end of the second quarter of this year. This means we should not see a change until at least July 20, 2010 as this would be their first meeting after the second quarter ends.
More importantly the economy grew by 5% annualized in the last quarter of 2009 which shows that the economic crisis is well over. If growth continues at this pace, the rise in rates will be significant once they start. The next few months and its growth should determine the pace of the increases so stay tuned.
You can read the entire press release here.
As always comments are welcome.
