The Bank of Canada is keeping its key interest rate right where it is at 0.5%.
The central bank cut the rate twice last year in a bid to stimulate an economy hit hard by plummeting energy prices.
“There were no surprises to be had in this rather uneventful update. This was to be expected, given that the economy has moved more or less in line with the Bank's expectations at the time of the January Monetary Policy Report [MPR],” TD economist Brian DePratto wrote in a note to investors.
The benchmark rate influences everything from the interest banks charge on loans to the value of the loonie.
The Bank of Canada cut the rate twice in 2015 to encourage borrowing and devalue the dollar to boost exports.
Statistics Canada reported earlier this month exports grew 1% between December 2015 and January 2016 to a record $46 billion.
But the Canadian dollar has rallied in recent weeks, trading as high as US$0.75 compared with a 2016 low of US$0.68.
The Bank of Canada said in its announcement the rebound in oil prices and the dollar falls in line with levels it assumed based on its January MPR.
“Although downside risks remain, the Bank still expects global growth to strengthen this year and next,” the bank said.
“At the same time, the low level of oil prices will continue to dampen growth in Canada and other energy-producing countries.”
