Canada maintains bank rate at 1 percent

• Tweet

OTTAWA, Sept. 5 (UPI) -- Canada's central bank maintained the central lending rate at 1 percent Wednesday where it has been since September 2010.

Bank of Canada Gov. Mark Carney wrote while there was some economic progress in the United States, Europe is in "acute" recession.

"In China and other major emerging economies, growth is decelerating somewhat more quickly than expected from previously rapid rates," the report said.

The bank suggested the borrowing rate could be increased sometime next year.

"In Canada, while global headwinds continue to restrain economic activity, underlying momentum remains at a pace roughly in line with the economy's production potential," the bank said. "Economic growth is expected to pick up through 2013, with consumption and business investment continuing to be its principal drivers."