Bank of Canada holds interest rate at 15 but pause might be

first_imgThe Bank of Canada is leaving its interest rate unchanged today in what could be a brief pause along its gradual path to higher rates.The central bank kept its benchmark at 1.5 per cent – but many experts are predicting it could introduce another increase as early as next month.In a statement today, the Bank of Canada said the strength of recent economic numbers reinforce the governing council’s view that more hikes will be necessary to keep inflation from rising above its target.The bank said business investment and exports have shown solid growth in recent quarters despite persistent uncertainty about the North American Free Trade Agreement and other trade policy developments.It said the housing market has begun to stabilize as households adjust to higher interest rates and new policies.The bank said credit growth has moderated and improvements in labour and wages have helped support consumption.last_img