The Bank of Canada announced earlier today that it is once again keeping its key policy rate unchanged, although continuing to signal that rates will move higher at some point. The prime rate for most lenders should stay at 3%.

The Bank's statement noted that "housing activity is expected to decline from historically high levels, while the household debt burden is expected to rise further before stabilizing by the end of the projection horizon." There was caution that these high debt levels could be an impetus to raise rates, stating that the decision will be "weighed carefully against global and domestic development, including the evolution of imbalances in the household sector."

The Bank's next rate decision is scheduled for December 4.