Canada's central bank kept its lending rate at an all-time low of 0.25 percent Thursday, reiterating plans to hold the current rate until mid-2010.
Recent economic indicators ''point to the start of a recovery in major economies,'' due in part to massive government stimuli and the stabilization of global financial markets, the Bank of Canada said in a statement.
In Canada, improved financial conditions, firmer commodity prices and a rebound in business and consumer confidence are supporting domestic demand, it said.
Combined with inventory adjustments and new automotive production, growth in gross domestic product (GDP) in the second half of 2009 "could be stronger than the bank projected in July," the bank said.
However, inflation ''is still expected to trough in the current quarter'' before returning to the bank's two-percent target in the second quarter of 2011.
As well, ''persistent strength in the Canadian dollar remains a risk to growth and to the return of inflation to target,'' the bank said.
