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 was appropriate. This decision was expected by analysts.
The BoC said that financial market volatility seemed to dissipate, while the downside risks remained.
The BoC noted that the Canadian economic growth was better than expected in the fourth quarter. Employment improved, the central bank added.
According to the central bank, inflation was evolving broadly as anticipated.
Risks around the inflation are roughly balanced, the central bank said.
The BoC added that "vulnerabilities in the household sector continue to edge higher".