Bank of Canada sees slower growth; loonie stays up ( 10_YEAR 2_YEAR TBT TLT BND AGG TIP 30_YEAR UUP UDN FXE FXY USDJPY EURUSD DXY USDCAD ) (by Deborah Levine)
NEW YORK (MarketWatch) -- The Canadian dollar held onto gains against its U.S. counterpart on Tuesday after the Bank of Canada said its overall outlook on the domestic economy is little changed from last fall, though "the outlook for the global economy has deteriorated and uncertainty has increased," central bank officials wrote in a statement. Officials expect growth to slow to 2% in 2012 from 2.4% in 2011, before picking back up to 2.8% in 2013. Policy makers also held interest rates steady at 1%, as many analysts expected. The U.S. dollar (cur_usdcad) fell 0.3% to 1.01451 Canadian dollars, little changed from before the policy statement was released. "We expect the Bank of Canada is on hold until the fourth quarter, at which point we expect a 25 basis-point hike," said Elsa Lignos, G-10 currency strategist at RBC Capital Markets, before the statement.