The Bank of Canada left interest rates unchanged on Tuesday. Bloomberg reports:
The Bank of Canada left its key interest rate at a record low and amplified a warning about the country’s strengthening currency, saying it will “more than fully offset” recent signs of economic growth.
The target rate for overnight loans between commercial banks remained at 0.25 percent, as forecast by all 26 economists surveyed by Bloomberg. The bank repeated a commitment to keep the rate unchanged through June 2010 unless the inflation outlook shifts, adding it will now take three more months, until the third quarter of 2011, for inflation to return to the 2 percent target.
The Federal Reserve will also probably not make any move soon on interest rates. Again from Bloomberg:
Builders in the U.S. broke ground on fewer homes than forecast and wholesale prices unexpectedly fell in September, giving the Federal Reserve more reason to keep interest rates low to ensure an economic recovery.
Housing starts rose 0.5 percent to an annual rate of 590,000 from a 587,000 pace in August that was lower than previously estimated, a Commerce Department report showed today in Washington. Prices paid to factories, farmers and other producers fell 0.6 percent, the second drop in three months, the Labor Department said...
The National Association of Home Builders/Wells Fargo’s confidence index, released yesterday, unexpectedly declined in October on concern the expiration of the first-time homebuyer tax incentive would reduce demand...
Building permits fell 1.2 percent to a 573,000 annual rate last month. They were forecast to climb to a 595,000 pace from 579,000 in August.
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