Bank of Canada holds firm on interest rates

Today the Bank of Canada decided to hold interest rates at 1%, surprising no one. It did hint, once again, that it would raise them eventually.

The bank lowered its growth estimates for the coming years, to 2.1 percent in 2012, 2.3 percent in 2013 and 2.5 percent in 2014. The bank said housing activity is likely to slow, but consumption and business investment would drive growth.

In typically arcane language, the bank said: "To the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate."

In other words, the BOC will be leaving things as they are for now, but it may take its foot off the gas soon.