June 01, 2010
Les Whittington
Ottawa Bureau
OTTAWA—The era of rock-bottom borrowing costs came to an end Tuesday as the Bank of Canada raised its influential overnight interest rate to 0.5 per cent, up from 0.25 per cent.
Economic activity “in Canada is unfolding largely as expected,” bank governor Mark Carney said in a brief announcement.
“The economy grew by a robust 6.1 per cent in the first quarter, led by housing and consumer spending. Employment growth has resumed,” the bank said. Carney said the bank also anticipates an increase in business investment, which will be “important” for a continued recovery. Continue reading