Lending Rate In Canada Expected To Hold Until June

Posted on January 18/2010 by

Various economists and media are predicting the lending rate to hold tomorrow by the Bank of Canada and continue unchanged through June, as previously pledged.

Bloomberg reported its survey of 26 economists feel nothing will change in the 0.25 per cent rate, which has remained untouched since April. The Bank of Canada previously has said it will maintain the rate until the end of 2010's second quarter, unless an unexpected rise in inflation spurs necessary action.

In addition, Bank of Canada official David Wolf said last week that raising interest rates right now would be akin to "dousing the entire Canadian economy with cold water, just as it emerges from the recession."

Statistics Canada will report December's inflation rate on Wednesday.

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