MONTREAL -- The economy is being buffeted by a maelstrom of bad news, from SARS and mad cow disease to weakness around the globe, says Bank of Canada governor David Dodge. All that is slowing economic growth at home, the governor told a Montreal business group yesterday.

"We've had lots to keep us awake over the past few months," Dodge said.

"A number of recent adverse developments are going to reduce near-term economic growth in Canada."

That led analysts to suggest the Bank of Canada won't be in any rush to continue to boost interest rates.

The central bank had been gradually raising borrowing costs to keep a lid on inflation, which now seems less of a threat.

Dodge noted the SARS outbreak has hurt tourism, not just in Toronto where the virus is centred but in other parts of the country.

As well, he said, the closing of export markets to Canadian beef due to an isolated case of mad cow will be felt across the country.

Even the surprising jump in the value of the loonie, which has surged about 17 per cent so far this year against the U.S. greenback, has been a strain on the economy, he noted.

"The magnitude and speed of the Canadian dollar's rise has been greater than anyone anticipated and will have a dampening influence on aggregate demand later this year and next," said Dodge.

Still, his comments didn't upset the loonie which was up 0.08 of a cent at yesterday's close to 74.08 cents US.

Amid the upheaval at home, the mighty U.S. economy -- Canada's largest trading partner -- "has not been recovering as quickly as expected," threatening growth here.