Bank of Canada holds firm on interest rate

The Bank of Canada announced Wednesday it will hold its target for the overnight rate at the effective lower bound at .25 per cent.

That rate has been in place since March of last year but experts suggest there will be a series of rate hikes next year as the global economy recovers.

The central bank says the economy has had big gains in jobs, but the devastating floods in B.C. and the Omicron variant could weigh on economic grown.

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It comes following a strong run of economic data since the last policy decision in October, which has only cemented view that rate hikes are imminent.

We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. Find out more. #economy #cdnecon https://t.co/vmufNliIrk pic.twitter.com/yrikwl4LB6

— Bank of Canada (@bankofcanada) December 8, 2021

The Prime Minister says the country is committed to keeping inflation rates at two per cent, and that more announcements will be made in the coming days or weeks ahead.