Bank Of Canada Holds Interest Rates Steady

(RTTNews) - The Bank of Canada on Wednesday announced its widely expected decision to once again leave interest rates unchanged.

The Canadian central bank said it decided to hold its target for the overnight rate at 2.25 percent, with the Bank Rate at 2.50 percent and the deposit rate at 2.20 percent.

The BoC said its Governing Council judges the current policy rate remains appropriate to sustain the economic recovery and bring inflation back to the 2 percent target.

Noting that uncertainty remains high, the BoC said its Governing Council will continue to assess the strength of the Canadian economy and the outlook for inflation and is prepared to adjust monetary policy as needed.

The BoC also said the Canadian economy is showing signs of improvement, with growth picking up and inflation projected to ease gradually from its recent spike.

However, the Canadian central bank noted there are still important risks and uncertainties related to the war in the Middle East and U.S. trade policy.