Ottawa - The Bank of Canada has decided to keep its key interest rate unchanged at five percent today, citing evidence of a weakening economy.

The central bank says that given the weakening demand in the economy and the previous rate hikes, it needs more time for the measures to take effect, so it has chosen not to increase its key rate.

Forecasters were widely awaiting today's decision, as recent data has shown a contraction in the economy in the second quarter, while the unemployment rate has been increasing for three consecutive months.

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