The Bank of Canada is staying the course on interest rates, holding the overnight rate steady at 1.75 per cent.
The bank rate is two per cent and the deposit rate is 1.5 per cent.
In a statement about the decision, the bank said “the global economy is showing signs of stabilization, and some recent trade developments have been positive.”
However, it also noted that geo-political issues have emerged “with tragic consequences,” referencing the crash of flight PS752 in Iran, which ended the lives of 57 Canadians and many others with ties to Canada.
The bank said the Canadian economy has been strong but with mixed indicators since it’s last major update with October’s Monetary Policy Report.
“The Bank now estimates growth of 0.3 percent in the fourth quarter of 2019 and 1.3 percent in the first quarter of 2020. Exports fell in late 2019, and business investment appears to have weakened after a strong third quarter.”