Canada's central bank has raised interest rates for the third consecutive time.
The Bank of Canada increased its key interest rate on Wednesday by a quarter point to 1 percent. In June, Canada became the first Group of Seven nation to raise interest rates since the global economic crisis. It raised rates again in July.
The bank said financial conditions in Canada have tightened modestly but remain exceptionally stimulative. It also said any further rate hikes will need to be carefully considered considering the unusual uncertainty surrounding the outlook.
The bank said the economic recovery in Canada will be slightly more gradual than it projected because of weaker than expected growth in the U.S.
Canada withstood the global economic crisis better than most developed countries. There was no mortgage meltdown or subprime lending crisis in Canada where the financial sector is dominated by five large banks.
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