Bank of Canada holds firm on Prime lending rate

The Bank of Canada held firm on the prime lending rate this morning at 1%. This should result in the major retail banks holding at 3.00%. In it's statement this morning, the bank sighted further weakness in the European economies with further down side risk going forward. While the US seems to be experiencing an economic up tick, the bank expects this to be muted through 2012 and picking up some steam toward the end of 2013. Also China's growth has started to moderate to a slower pace. These factors as well as less than previously expected growth outlook in our domestic economy for 2012 are sighted as reasons for the rate hold. This of course is good news for variable rate borrowers who managed to take advantage of the ultra low rates offered in the first half of 2011.