Jan 22, 2014
By Scott Walker
The Bank of Canada’s interest rate will hold steady at one per cent for the foreseeable future.
The Central Bank was not expected to make any changes to its trend-setting rate.
But it’s also warning that inflation is going to remain unacceptably low for the next two years at least. That is longer than earlier forecasts.
The statement blames low inflation on the so-called “Target effect” of intense price competition from Walmart, Sobey’s, and the newly-arrived American giant, Target.
The combination of low interest rates and low inflation will put more downward pressure on the Canadian dollar, which is currently sitting at a four-year low.