Citing expectations of an economic recovery in the near future, the Bank of Canada decided to leave interest rates where they are, holding its key overnight rate at 2.75%. That also leaves the bank rate at 3%.

Financial markets had widely expected the rate not to move, despite signs that the Canadian economy is lagging that of the U.S. But with inflation a dead issue for now and the economic outlook vastly improving over recent months, monetary policy in Canada is likely in a holding pattern for some time yet, said one economist.

The decision to leave rates unchanged will likely also mean stable consumer borrowing rates, since the major retail banks tend to follow the central bank’s lead. Central bankers acknowledged “a number of cross-currents” working in the economy are making it difficult to tell just what’s going to happen next.

Growth in the third quarter, at 1.1%, was weaker than expected and inflation is unusually low, it said. But Canadians are still spending at home and an exceptional expansion in the United States should very soon spill over, the bank said in a statement.