Interest rate unchanged

The Bank of Canada kept its key lending rate at a historic low. The decision to leave borrowing rates unchanged came as no surprise because the central bank said in April it would leave the overnight rate at 0.25 per cent until the middle of next year, unless there is a sudden surge in inflation. The central bank reaffirmed its pledge to hold rates where they are for another year as it anticipates that inflation risks are still very low. The Bank of Canada has dropped 4.25 percentage points off the overnight rate since it started the current rate easing policy in December 2007.

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