Canada’s central bank leaves interest rate unchanged

TORONTO (AP) — Canada’s central bank declined to raise its benchmark interest rate and says the highly contagious omicron coronavirus variant is weighing on the economy.

The Bank of Canada says it expects interest rates will need to rise later as economic growth bounces back.

The bank is keeping its key overnight interbank interest rate target on hold at 0.25%. It said Wednesday inflation expectations have moved up in the short term.

The announcement comes ahead of a announcement by the U.S. Federal Reserve.