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02.12.2015 15:28 Bank of Canada keeps its interest rate unchanged at 0.50% in December

The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%, noting that the current monetary policy is appropriate. This decision was expected by analysts.

 

The BoC said that the Canadian economy is expected to expand moderately in the fourth quarter of 2015.

 

According to the central bank, the Canadian economy was adjusting to a drop in Canada's terms of trade, which was driven by the recovery in the U.S. economy, a lower Canadian dollar and stimulus measures by the BoC.

 

"The labour market has been resilient at the national level, although with significant job losses in resource-producing regions," the BoC noted.

 

Risks to the country's financial stability are evolving as expected, and risks around the inflation are roughly balanced, the central bank said.

 

The BoC added that "vulnerabilities in the household sector continue to edge higher".



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