The Bank of Canada is to keep it’s key interest rate unchanged at 0.5%.
The central bank says the decision was taken due to the fact that the economy is adjusting as expected to low commodity prices and weaker than expected demand from the United States and that Canadian inflation remains within its target range.
It also stated the economy has received help from the lower Canadian dollar, the ongoing U.S. recovery and the Bank of Canada’s moves to cut rates twice this year.
Growth is expected to moderate in the final three months of 2015 before picking up steam in early 2016.
However, the bank has also pointed to economic challenges such as lower business investment in resource sectors and vulnerabilities in the housing sector that continue to creep upwards.