Bank of Canada sees economy growing at below one per cent

But BoC refuses to guarantee it will keep rates at record lows

Bank of Canada lowered its growth forecast for the fourth-quarter to 0.8 per cent on Wednesday, down from a previous projection of 2.9 per cent. Central bank Governor Mark Carney told reporters he expected growth would suffer because of a probable recession in Europe and continued weakness in the U.S. The economy should see a pickup “from the middle of next year,” he added. The central bank, however, refused to commit to prolonged record-low interest rates, the way it did in the spring of 2009, as Canada emerged from recession. Current circumstances do not warrant the use of such an “unconventional policy tool,” Carney said.



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