Bank of Canada holds interest rate at 5%

Bank of Canada keeps key interest rate on hold

Bank of Canada holds rate steady, signals more hikes to come

The Bank of Canada has held its key interest rate at 5% again, saying that it is still too soon to consider rate cuts while underlying inflation remains elevated.

The decision was widely expected by economists, who had forecast that the central bank would keep its benchmark rate unchanged at its meeting on Wednesday.

In a statement, the bank said that it "judges that it will be appropriate to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases to date."

The bank also said that it "continues to judge that raising the policy rate will be required to bring inflation back to the target of 2%."

The Bank of Canada's decision to hold rates steady comes as the Canadian economy continues to grow, but at a slower pace than earlier in the year.

The bank also noted that global economic growth is slowing, and that this could weigh on the Canadian economy in the coming months.

The bank's next scheduled interest rate announcement is on October 26.