As expected, the Bank of Canada has left interest rates unchanged. The bank announced today that it is maintaining its target for the overnight rate at 2.5%.

The operating band for the overnight rate is unchanged, and the bank rate remains at 2.75%.

Economists had expected the central bank to stand pat on rates. They will now be looking ahead to Thursday when the bank releases its monetary policy report update for more clues on the timing of future rate hikes.

The central bank sent a strong signal that higher rates are on the way.

In its statement, the bank said, “Global and Canadian economic developments since the 25 May interest rate announcement have been broadly consistent with the Bank’s expectations. In Canada, further progress has been made in adjusting to global developments, and the economy is operating close to its production capacity.”

Economists widely expect the bank will boost rates in the autumn.

The bank’s next scheduled date for announcing the overnight rate target is September 7.

The Canadian dollar moved up sharply Tuesday after the central bank’s announcement. The currency moved up 0.7 of a cent to US82.9¢.