With all the uncertainty surrounding many of the world's economies there was a sure bet that the Bank of Canada would hold the overnight rate at 1% given the strength of the headwinds blowing against our borders.
The Bank of Canada said in a release, "Uncertainty around the global economic outlook has increased in the weeks since the bank released its October Monetary Policy Report. Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened. Additional measures will be required to contain the European debt crisis. The recession in Europe is now expected to be more pronounced than the Bank had anticipated in October, as a result of increased deleveraging and tighter financial conditions, as well as necessary fiscal austerity and structural reforms."
It isn't just the Eurozone that is experiencing turbulence. Employment data relesed last week from Stats Canada, with an unexpected job loss, suggests that economic conditions may not be as favourable as one might have thought a few months ago. However, the figures were not unexpected as the Bank had cautiously predicted sluggish growth through the end of the year.