Bank of Canada Holds Interest Rate at 2.25 Per Cent

The Bank of Canada has maintained its benchmark interest rate at 2.25 per cent for a seventh consecutive decision, following a widely anticipated move.

According to the central bank's policy makers, this rate helps keep inflation under control and supports economic growth when prices are stable.

In July, inflation rose to three per cent, largely driven by volatile gas prices due to the war in Iran over the spring and summer.

Economic growth has shown signs of rebounding after stagnating for much of last year.