Bank of Canada keeps interest rate unchanged

The Bank of Canada said Wednesday it would hold the key overnight rate at 1.0 per cent, where it has sat since September, 2010, calling it "appropriate for a period of time."

The move by outgoing Bank of Canada Governor Mark Carney was expected, particularly after the bank cut Canada's 2013 growth outlook in January to 2.0 per cent from 2.3 per cent, indicating interest rate hikes are likely further off than previously considered.

While the bank is still warning of a hike to come, some economists believe it could be 2014 before rates rise, which would extend what is already the longest pause since the 1950s.

Wednesday's rate decision is one of Carney's last before he leaves his post on June 1 to become Governor of the Bank of England on July 1.