The Bank of Canada

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The Bank of Canada left interest rates at 0.25%, as expected but policymakers also said that “conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010.” The Canadian dollar also weakened in the aftermath of the statement as, the central bank said, “the persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to act as significant drags on economic activity in Canada.” They also said the main risks to the economy “are a more protracted global recovery and persistent strength of the Canadian dollar that could act as a significant further drag on growth and put additional downward pressure on inflation.”