Bank of Canada keeps interest rate at 1%

(QMI Agency file photo)

(QMI Agency file photo)


, Last Updated: 11:51 PM ET

TORONTO - The Canadian dollar weakened against the greenback on Wednesday after the Bank of Canada said the risks of low inflation loomed as large as ever despite a rise in prices.

The central bank also held its policy rate at 1%, as expected.

The Canadian dollar weakened after the decision, though it remained off its session low. The currency was most recently trading at $1.0944 to the greenback, or 91.37 U.S. cents, weaker than Tuesday's close of $1.0910, or 91.66 U.S. cents.