Canada's key lending rate stays stable as economy looks to improve amid growing exports to US

Canada's central bank has maintained its key lending rate at 0.5 per cent as low oil prices kept a lid on inflation.

The fallout of last year's plunge in oil prices, which led to a contraction in the first half of the year, the Bank of Canada said on Wednesday, continues to be felt in the Canadian resource sector 'with some spillover to the rest of the economy'.

'These adjustments are complex and are expected to take considerable time,' it added.

Canadian consumer spending and a 'firm recovery' in the neighbouring United States, 'with particular strength in the sectors of the US economy that are important for Canadian exports', have bolstered the local economy...