The Bank of Canada held its key interest rate on Tuesday at 0.25 percent, as expected, and maintained its outlook on the economic recovery despite unexpectedly weak third-quarter growth.
"The main drivers and the profile of the projected recovery in Canada remain consistent with the bank's views in the October Monetary Policy Report," the central bank said in a statement, repeating its conditional commitment to keep rates near zero until the end of June 2010.
The rate decision was widely expected by primary securities dealers surveyed by Reuters and the tone of the statement was broadly in line with market expectations.
The bank once again flagged the strong Canadian dollar as a major risk to its view, saying it could "act as a significant further drag on growth and put additional downward pressure on inflation."
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