Bank of Canada holds interest rate steady at 4.5%

The Bank of Canada is holding the key interest rate steady at 4.5 per cent.

This is the first time in a year that the central bank has decided to not hike the key rate.

However, it is keeping the door open to further rate increases if the economy or inflation run hotter than expected.

READ MORE: Bank of Canada raises key interest rate by a quarter point to 4.5%

Recent data shows inflation slowed to 5.9 per cent in January, while the economy posted no growth in the fourth quarter.

The annual inflation rate is still anticipated to fall to around three per cent by the middle of this year.