The Bank of Canada is once again keeping its key policy rate unchanged, and surprisingly indicating that future rate hikes are less imminent than previously anticipated. The Bank's statement noted that in Canada "the slowdown in the second half of 2012 was more pronounced than the Bank had anticipated," that "caution about high debt levels has begun to restrain household spending," and that "core inflation has softened more than the Bank had expected."
The prime rate for most lenders should stay at 3%, exactly where it has been for 27 months.
The Bank's next rate decision is scheduled for March 6.
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