The Bank of Canada has decided to keep its key overnight rate at 1%. Global uncertainty with concerns over Europe’s recession and economic stability continue.
In Canada household expenditures and business investing remain strong, however the strength of the Canadian Dollar is concerning for our export business. Also underwatch is our growing unemployment numbers.
Credit rating agency Standards & Poors put 15 European nations on “credit watch with negaive implications”, meaning there is a 50% chance they will have their ratings cut.
The next meeting for the Bank of Canada is scheduled for January 17, 2012.