The Bank of Canada raised its key interest rate by a quarter of a per cent today, for the third consecutive time.
 
The Bank noted in its announcement that it “now expects the economic recovery in Canada to be slightly more gradual” than it predicted at the time of its last rate hike in July, citing weaker economic activity in the U.S.  However, the Bank also stated today that consumption growth in Canada “is expected to remain solid and business investment to rise strongly” supported by “accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.”