Bank of Canada Holds Rates Steady But Warns Further Hikes Are Possible If Inflation Persists

Bank of Canada kept its key interest rate unchanged in September at 5% as the economy shows signs of slowing growth.
Inflation remains above the central bank's 2% target for over two years, prompting warnings of further rate hikes if prices keep rising.
GDP unexpectedly contracted in the second quarter, but the Bank said it's prepared to raise rates again if needed to control inflation.
Analysts believe the central bank is unlikely to hike rates again unless economic growth rebounds in the third quarter.
Finance Minister's comments on welcoming the rate decision were seen by some as interfering in the Bank's independence.