The Bank of Canada has decided to keep its benchmark interest rate right where it is while it digests the impact of its previous policy decisions and the cooling economy.

The central bank revealed Wednesday it will keep its benchmark interest rate — known as the target for the overnight rate — at 1.75 per cent. The bank raised its rate to that level in October, the fifth time since the summer of 2017 that it decided to hike.

The bank’s rate directly affects the rates that Canadian consumers get from retail banks. When the central bank hikes its rate, it makes borrowing more expensive — but it’s good news for savers.

None of the economists polled by Bloomberg were expecting an increase this time around, but trading in investments known as overnight index swaps implies there’s a two in three chance of a rate hike next month.

More to come

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