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TORONTO — Canada's central bank is keeping its trendsetting interest rate unchanged at a historic low of 0.25 percent and says the rise of the Canadian dollar is threatening the country's economic recovery.
The Bank of Canada reiterated Thursday its conditional commitment to hold the rate at a record low through June 2010. The bank says it is conditional on inflation and says inflation risks remains tilted slightly to the downside.
The bank says the rapid rise of the Canadian dollar in recent weeks could offset improved financial conditions and commodity prices. The dollar has risen to the US90-cent level from US$80 cents.
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