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 Dec. 15, 2020. Sean Kilpatrick/ The Canadian Press
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OTTAWA—The Bank of Canada is keeping its key interest rate target on hold at 0.25 percent, saying economic conditions still require it even if things are going better than anticipated.

In a statement, the central bank says it expects economic growth in the first quarter of 2021 to be positive, as opposed to its previous forecast in January for a contraction to start the year.