Bank of Canada keeps key rate on hold at 0.5 per cent
The Bank of Canada kept its key interest rate on hold at 0.5 per cent on Wednesday and said the country’s resource sector continues to adjust to lower prices for oil and other commodities.
The decision by the central bank was in line with economists’ expectations.
Sherry Cooper, chief economist of the Dominion Lending Centres, said the central bank had been disappointed with the export sector, but more recent data that has improved considerably.
“That is a result of the decline in the Canadian dollar as well as the strength in the U.S. economy, both of which helped offset the negative effects of the havoc that has been wreaked in the oil sector,” she said Wednesday.
Cooper said if the signs of growth of for the third quarter hold steady, the Bank of Canada will likely keep its key rate on hold for a “considerable period.”