OTTAWA – The Canadian dollar fell sharply after the Bank of Canada announced it is sticking to its low interest rate policy and it will likely continue to do so for some time, reported Canadian Press.
The bank is keeping the trendsetting overnight rate at one per cent, where it has been since September 2010. But in a change from its previous forward-looking guidance, it says such a low level will likely remain in place for a period of time.
In a statement, the bank says that it believes household debt levels are stabilizing, removing some of the worries about low rates for a long time.
On the economy, the bank says there is considerable slack, but it still believes growth will pick up this year.
In January, the bank projected growth rates of 2.0 per cent and 2.7 per cent for 2013 and
