Carney Confident Canada can survive Economic Crisis

Bank of Canada Governor Mark Carney delivered an assuring message to Canadians yesterday. In that message he stated that he expects the strength of Canadian financial structures to carry it through the growing international crisis.

He also stated that even if other country's fell back in to a recession Canada's economy would remain in tact. This is due to the fundamental strength of Canada's banking system, which was named the best banking system in the world for the 4th consecutive year.

That being said, expect the Bank of Canada to hold interest rates until they can see some stability in the work economy.

Click here to read the complete article from CTV.ca

Bank of Canada keeps overnight rate at 1 percent

The Bank of Canada has done a 180 shift and held the bank rate at 1% (3% prime rate). Earlier this year is was a forgone conclusion that the BoC was going to start to raise rates this fall.

Several factors have forced the banks hand, such as the global economic outlook has deteriorated in recent weeks. The European debt crisis has intensified, along with the US downgrade of credit from AAA to AA, plus the US recession was deeper and has been shallower than previously reported. Recent data also concludes that the US growth recovery will be weaker than anticipated.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of slowing global economic momentum and heightened financial uncertainty

The next BoC update is October 25, 2011.

Click here to read the entire article from the Bank of Canada.