Bank of Canada Interest Rate Hold
The Bank of Canada maintained its key lending rate at 0.25 percent, but warned of pending rate hikes as the economy outperforms expectations.
Bank of Canada lowered interest rates rapidly in 2008 and early 2009 to the lowest possible level and made a conditional commitment in April 2009 to maintain it at this level until mid-2010 when the economy is expected to bounce back.
"However, global economic growth has been slightly stronger than projected, with momentum in developing countries continues to be felt up," the central bank statement said.
"With some improvement in the economic outlook, the need for such extraordinary policy now passed, and it is appropriate to begin to reduce the degree of monetary stimulus," he said.
The level and timing changes in interest rates will depend on the outlook for economic activity and inflation.
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