Excerpt from Associated Press
The Federal Reserve sketched a dim outlook for the U.S. economy Tuesday, suggesting it will remain weak for two more years. As a result, the Fed said it expects to keep its key interest rate near zero through mid-2013.
The low rates in the US will put more pressure on the Bank of Canada to keep borrowing costs on hold as well. There had been speculation the Canadian central bank would begin raising rates this fall to curb inflationary pressures in the Canadian economy However, economists say the recent stock market turmoil and the fears of a double-dip recession in the United States has made it likely that rates won’t rise in Canada until next spring at the earliest.
That’s good news for the Canadian housing sector, which has expanded strongly because of low mortgage rates and solid economic growth in recent years. | 
