Central bank keeps key interest rate at 5%

The Bank of Canada is holding its benchmark interest rate steady at five per cent.

The central bank says past interest rate hikes are dampening economic activity and helping to ease inflation.

The key interest rate sets the stage for consumer loans, like mortgages.

The bank has rapidly raised its rates since March of last year to reign in inflation.

September’s inflation rate came in at three-point-eight per cent, still higher than the Bank of Canada’s target of two per cent.

– with files from Vista Radio newswire