OTTAWA - The Bank of Canada is keeping its trend-setting interest rate at one per cent.
The central bank says while Canada's exports are up, that growth will need to continue if it is to translate into more business investment and hiring.
The Bank of Canada also notes that activity in the housing market is stronger than previously thought.
It says the global economy is performing as expected, with Europe's recovery faltering amid the ongoing crisis in Ukraine while the United States' recovery is on track thanks to stronger business investment.
The central bank says it attributes an earlier pickup in inflation to the temporary effects of higher energy prices, exchange rate pass-through and other factors, rather than to any change in the economic fundamentals.
The Bank of Canada notes that while the risks for inflation remain balanced, the risks associated with household debt have not gone away, so it is keeping the overnight interest rate at one per cent.
