The Bank of Canada announced Wednesday that it is maintaining its key interest rate at its current level, indicating that it will continue to analyze the evolution of the economy and the repercussions of the eight hikes it has made in the last year.
The central bank added that its decision to leave its overnight rate at 4.50% was based on recent economic data.
However, it still leaves the door open to possible further rate hikes if the economy proves too vigorous or if high inflation proves more persistent.
In January, the Bank of Canada indicated that it expected to maintain its key rate if the evolution of the economy showed itself generally in line with the outlook presented in its forecasts.
Recent data showed annual inflation slowed to 5.9% in January and the economy achieved zero growth in the fourth quarter.
The central bank still expects annual inflation to slow to around 3.0% by the middle of the year.
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