The Bank of Canada decided today, Wednesday, to keep the key interest rate at 4.5 percent unchanged, for the first time in a full year.

Economists expected the central bank to halt the cycle of raising the interest rate, which began last March from the lowest level during the pandemic at 0.25 percent.

The central bank mentioned - in January - that it intends to maintain the 4.5 percent rate to assess the impact of the price increases so far, amid signs that core inflation has peaked and that the restrictive monetary policy had been effective.

However, the bank's board of directors said - at that time as well - that it is ready to raise rates if necessary to reach the target inflation rate of 2 percent.

The latest report from Statistics Canada stated that the Consumer Price Index rose by 5.9 percent in January from last year; a smaller increase than that mentioned in December but still above the central bank's target.

Although this will be encouraging news for borrowers, this step was widely expected, and the bank indicated, in its previous policy meeting and subsequent statements, that it was inclined to maintain its steady rate.

The bank feels confident in keeping the interest rate unchanged because there is increasing evidence that the high inflation is beginning to decline.