CBJ — The Bank of Canada has kept its benchmark interest rate at 1.2%, although hikes could be in the offing in the not so distant future.

“Governing council has agreed that, over time, the economy would appear to be warranting higher interest rates — our uncertainty is about how much and at what pace,” governor Stephen Poloz told a news conference following the official rate announcement.

The latest rate decision comes at a time of moderating growth following a strong 2017. Inflation is also running close to its ideal target and wage growth has strengthened with a tightening labour force.

For the first three months of 2018, the bank is predicting growth of about 1.3% — considerably lower than its January projection of 2.5%.

@CanBizJournal