Bank of Canada looks to global recovery

Late last week, the Bank of Canada held the target for its overnight rate at 0.25% and said, "Recent indicators point to the start of recovery in major economies, supported by aggressive policy stimulus and the stabilization of global financial markets."

Stimulative monetary and fiscal policies, firmer commodity prices, and a rebound in business and consumer confidence are supporting domestic demand growth in Canada, the bank said. GDP growth in the second half of 2009 could be "stronger than the Bank projected in July."

The U.S. consumer is still holding back amid high unemployment and worries that the unemployment rate could creep past 10%, but gains around the world, including its major trading partner to the north, bode well the world's largest economy.