(MENAFN) The Bank of Canada stated that its benchmark interest rate remains unchanged at 1 percent, citing worsening global economy, reported Xinhua News.
The central bank attributed the decision to the decline in Chinese economic growth, which exceeded forecasts, slow economic growth in the US and Europe's debt crisis, with its effects expected to continue.
It noted that since April, global financial conditions have worsened, whereas the deceleration of global economic growth pace caused a notable decrease in commodity prices.
The bank expects the country's economy to post an expansion of 2.1 percent in 2012, whereas 2013 and 2014 growth is expected at 2.3 percent and 2.5 percent respectively, compared with previous forecasts of a 2.4-percent expansion for both years.
It is worth noting that the International Monetary Fund (IMF) expects Canada's economic growth during the current year to be at 2.1 percent and at 2.2 percent in 2013.
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