Bank of Canada Keeps Key Interest Rate Target on Hold at 0.25 Percent

Bank of Canada Keeps Key Interest Rate Target on Hold at 0.25 Percent
The Bank of Canada in Ottawa on Tuesday, Dec. 15, 2020. The Canadian Press/Sean Kilpatrick
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OTTAWA—Canada’s central bank has sent a warning that increases in the cost of living would continue into next year, but signalled it wasn’t yet prepared to pull its key lever to rein in inflation.

The annual pace of inflation in October rose to 4.7 percent, a pandemic-era high and the fastest year-over-year gain in the consumer price index in 18 years.