11 July 2006, 17:54  Bank of Canada keeps key interest rate unchanged at 4.25 %

The Bank of Canada has kept its main interest rate unchanged at 4.25 pct, after a series of monthly rises. The bank said its outlook for economic growth and inflation in Canada has not changed, despite "a little stronger" than expected growth in the first half of the year and a dollar trading "somewhat higher" than expected. There was a further shift in demand from exports to domestic consumption while the economy continues to operate "just above its production capacity," the bank said. But, inflation has remained above its 2 pct target, due to higher energy prices, the bank said.

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