Bank of Canada's rate decision
Mark Carney, the central bank’s governor, now has left borrowing costs unchanged since September 2010, the longest period of static interest rates since the mid-1950s.
Mark Carney, governor of the Bank of Canada announced Wednesday that the central bank will again leave the benchmark rate at 1%. The rate has remained unchanged since September of 2010, making this the longest period rates have remained unchanged since the 1950s. Taking into account the current state of the global economy, this decision does not come as a surprise to economists, saying the Bank of Canada had little choice but to leave the rate unchanged.
The central bank first hinted at the possibility of raising rates in April, in hopes of taming what was believed to be a housing bubble. The belief is that continued warnings of rising rates, combined with recently implemented mortgage regulations will accomplish the goal without boosting the overnight rate.