News

The Canadian economy is projected to expand by 2.8 per cent in 2011, 2.6 per cent in 2012, and 2.1 per cent in 2013, returning to capacity in the middle of 2012. Total CPI inflation is expected to return to the 2 per cent target by the middle of 2012.

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The survey results point to an overall net easing in business-lending conditions. The balance of opinion regarding both price and non-price lending conditions showed the greatest degree of consensus on easing since the survey began in 1999.

Businesses remain positive about the outlook for the next 12 months, despite more modest expectations for U.S. economic growth. Indicators of future sales and investment are moderately higher, and intentions to hire have become more widespread.

In a speech to members of the Financial Markets Association of Canada and Women in Capital Markets, Deputy Governor Agathe Côté discusses risks to the Canadian financial system and reform of the global system.