Bank of Canada holds rate at one per cent

The Bank of Canada held its benchmark interest rate at one per cent today, citing slowing global growth and a deepening of the sovereign debt crisis in Europe. The Bank noted in a statement that Europe was headed toward a downturn that will be “more pronounced” than estimated only a few weeks ago, when governor Mark Carney said the continent was in for a brief recession. The Bank, however, continues to see no need for lowering rates, as recent economic indicators point to a pick-up of activity in the U.S.