The Bank of Canada is keeping its key interest rate at 0.25%.
Many economists had predicted that it would rise based on inflation rates hitting a 30-year high in December 2021.
That said the central bank expects interest rates will need to increase, with the timing and pace of those increases guided by the Bank’s commitment to achieving the 2% inflation target.
A rise in the rate would affect costs for loans like variable-rate mortgages and other borrowing linked to the benchmark rate.
The next update is scheduled to happen on March 2, 2022.
