The Bank of Canada left its trend-setting interest rate unchanged at 1.75 per cent Wednesday as the sharp decline in oil prices temporarily dims its economic outlook for the coming months
Thanks to the strengthened economy, the bank has been on a gradual rate-hiking path for more than a year and has already raised the benchmark five times since the summer of 2017
Bank of Canada governor Stephen Poloz wants Canadians to get used to the idea of three per cent interest rates as the new normal
The central bank delivered a quarter-point rate increase for the fifth time since the summer of 2017 to bring the benchmark to 1.75 per cent. The rate is now higher than it's been in about a decade.
Experts predict another increase could arrive as early as next month.
The Bank of Canada raised its benchmark interest rate Wednesday in an economy that it predicts will remain resilient even as it faces an even bigger bite from deepening trade tensions.
Keeps key interest rate target on hold at 1.25% for now
Most economists expect the central bank to retain its key rate at 1.25%.
Recent trade policy developments have created thickening clouds around the outlook for the Canadian and global economies.
Results further solidify expectations that interest rates will rise for a third time since last summer.