Carney Signals Rate Increases May Be Delayed by Europe Crisis - BusinessWeek

The Bank of Canada signaled its decision to raise rates won’t necessarily be repeated soon, reflecting concerns among policy makers worldwide that Europe’s debt crisis poses a risk to the economic recovery.

Governor Mark Carney yesterday became the first central banker in the Group of Seven to raise his policy interest rate since 2008, to 0.5 percent from a record-low 0.25 percent. While citing “robust” domestic growth and inflation pressures, Carney mentioned Europe and its debt crisis four times in a one- page statement that said further increases would be “weighed carefully.”

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