Bank of Canada unwilling to throw in towel

Today's Bank of Canada policy statement showed that it is unwilling to throw in the towel on its previous statements that interest rates may need to rise, from the current 1%. Even so, the Bank's downbeat assessment of global economic growth prospects, financial conditions and downgrades to Canada's growth prospects suggest that it is effectively on the sidelines. Accordingly, the bank's statement supports our long held view that interest rates are unlikely to rise anytime soon.