Canada central bank keeps key lending rate at 1pc

OTTAWA: Canada's central bank kept its key lending rate at one percent on Tuesday, saying Europe faces a "deeper and longer" recession than previously expected and a worsening debt crisis.

"The sovereign debt crisis in Europe has intensified," the Bank of Canada said in a statement, and "the recession in Europe is now expected to be deeper and longer than the bank had anticipated in October."

Copyright AFP (Agence France-Presse), 2012