Central bank leaves interest rates at 3 per cent

[TrogL]

Source: CTV

The Bank of Canada left the overnight interest rate unchanged at three per cent on Tuesday, suggesting inflation in coming months could be worse than previously expected.

The bank decided on the measure despite fears of an economic slowdown that could have justified a slight rate cut. The decision was widely expected among members of the financial community.

...

"Three major developments are affecting the Canadian economy: the protracted weakness in the U.S. economy; ongoing turbulence in global financial markets; and sharp increases in many commodity prices," the bank said in a statement released Tuesday.

Read more: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080715/interest_rates_080715/20080715?hub=TopStories

---

They've been dropping the rate on a practically monthly basis. It had to stop sometime.