Bank of Canada Holds Rate Amid Mixed Signals

The Bank of Canada has decided to keep its interest rate at 2.25%, despite mixed signals from the economy.

The central bank forecasts that the economy will expand by 0.7% this year, rising to 1.8% by 2027 and maintaining that pace in 2028.

Council members concurred that the 'trade-off facing monetary policy had diminished,' and they expressed growing assurance that the economic expansion would pick up in the latter part of this year.

However, not everyone on the governing council is sold on the recovery story. Some members questioned whether the economy's rebound is 'sustainable beyond the near term.'