The Bank of Canada cut its 2013 growth forecast Wednesday and said it now thinks the economy won't get back up to full speed until mid-2015 -- about six months later than predicted earlier this year.
3
The Bank of Canada is hinting it is less concerned about household debt levels, making it possible to keep attractive interest rates in place longer to spur investment and economic growth.
Unwilling to cut interest rates to help restart the stalled economy, the Bank of Canada may seek to achieve the same end result Wednesday by continuing to soften its tone over future intentions.
Low interest rates will remain the norm for longer than anticipated, the Bank of Canada signalled Wednesday as it lowered growth expectations for 2013, citing global and domestic economic challenges.
Bank of Canada governor Mark Carney says interest rates may need to rise to discourage excessive borrowing, but adds there is evidence Canadians are already getting the message.
The Bank of Canada says low interest policies that it and other central banks have put in place are adding another layer of risk to the already stressed global financial system.
The Bank of Canada is holding fast to its view that the economy is poised for a comeback and that interest rates will need to rise at some point in the future.
Nearly half of respondents in a national survey said they would have difficulty keeping up with mortgage or debt payments following a significant increase in interest rates.
