The Bank of Canada is keeping its key interest rate at 1.25 per cent, saying it expects further rate hikes to be necessary over time.
The central bank had predicted first-quarter economic growth of 2.5 per cent and says the slower actual growth of about 1.3 per cent was partly due to the impact of stricter mortgage rules on the housing market.
It is predicting the economy will rebound in the second quarter and post growth of 2.5 per cent.
