The Bank of Canada today announced yesterday it was maintaining its overnight rate at 1 per cent.

"Inflation is close to the two per cent target and is evolving as the Bank anticipated in its July Monetary Policy Report (MPR)," said a release from the Bank. "Recent data reinforce the Bank's view that the earlier pickup in inflation was attributable to the temporary effects of higher energy prices, exchange rate pass-through, and other sector-specific factors rather than to any change in domestic economic fundamentals."