Bearish Canada keeps rates low

The Bank of Canada took the prospect of interest rate hikes off the table yesterday with downgraded forecasts that showed some of the gloss coming off an economic recovery touted as the strongest in the G7. The central bank held its key interest rate steady at an ultra-low one per cent, as expected, but said the European debt crisis and weakness in its top trade partner, the US meant the outlook for the Canadian economy had weakened.