BoC keeps policy interest rate at one per cent; expects growth to pick up in 2013

OTTAWA – The Bank of Canada says it needs to keep interest rates low to provide stimulus to a slow-moving economy.

The central bank says global conditions remain weak and that growth in previously hot emerging markets is cooling faster than previously thought, although Canada’s economy continues to grow moderately.

Under these conditions, which haven’t changed significantly since July, the bank says it will keep its overnight rate at one per cent.

The policy interest rate has not changed in two years, but the bank is maintaining its tightening bias, which means that the next move — whenever it comes — is more likely to be toward higher interest rates.

The bank says it expects economic growth in Canada to pick up through 2013.