Bank of Canada holds steady on key interest rate

The Bank of Canada has kept its key interest rate target on hold, but hinted that rate hikes could be coming.

The central bank held its target for the overnight rate at 1.25 per cent.

It says while housing resale activity has remained soft, Canada’s exports of goods have been more robust than forecast and solid labour income growth supports the expectation that activity will pick up.

The rate is a a key financial benchmark that influences the prime lending rates at the country’s big banks.