OTTAWA—As widely expected, the Bank of Canada kept its overnight rate target at 0.50 percent on Weds. Dec. 2, saying the economy is behaving as expected. A Bloomberg survey of 33 economists showed unanimity in expecting the BoC to leave rates unchanged.
The central bank has been emphasizing the economy is diversified and it expects the non-resource sectors to eventually outweigh the drag from the energy sector. Two rate cuts this year have been propping up the economy, however energy prices have edged lower recently.
The resource sector is still contending with lower prices for commodities.