The Bank of Canada is keeping its trendsetting interest rate anchored at 1% for the remainder of the year, but is sending a message that it still believes the cost of borrowing in Canada will go up at some point in the future.
The decision by the central bank’s policy-setting panel was in line with the expectations of markets and economists.
The Canadian dollar gained strength after the announcement, with the loonie up 0.19 of a cent to 100.7 cents US.
The bank’s statement today suggests it is looking past disappointing third quarter economic results as a temporary aberration.
“Although underlying momentum appears slightly softer than previously anticipated, the pace of economic growth is expected to pick up through 2013,” the bank said in a statement.