Financial Times FT.com

Bank of Canada renews pledge to hold rates

By Bernard Simon in Toronto

Published: October 21 2009 03:51 | Last updated: October 21 2009 03:51

The Bank of Canada has reiterated its pledge not to raise interest rates before mid-2010, saying that subdued exports caused by the surging Canadian dollar will more than offset a recent recovery in domestic demand.

A drop in unemployment last month, the first in a year, encouraged some economists to predict that the bank might follow Australia’s lead in raising interest rates sooner than expected.

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