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Bank of Canada holds rates steady at 0.5%

economy, interest rates, bank of canada, federal, mortgages, rates

Poloz holds rates
Interest rates are to remain relatively stable as the Bank of Canada decided once again to keep its interest rates set at 0.5 per cent.

Stephen Poloz made the decision not to either lower or raise its target citing significant uncertainties in the Canadian economy. This is despite an inflation rate jump to 2.1 percent in January.

The Bank said that cost of living is rising less than the inflation rate suggests. They noted that outside the carbon tax energy price increase, the cost of living is not rising fast.

These rates play important role on consumer retail bank products such as variable-rate mortgages.