加通社：加央行维持利率不变（英文）

Unfazed by a sizzling Canadian dollar, the Bank of Canada left its key overnight interest rate unchanged at 2.75 per cent today.

Many economists had expected the central bank to stand pat, although some said the rate should fall to cool the fevered rise in the Canadian dollar, which has shot up to more than 75 cents (U.S.) in recent weeks.

Andrew Jackson of the Canadian Labour Congress wanted a rate cut, saying the dollar should be trading around 70-72 cents (U.S.), not 75 cents. He worried the high dollar could hit manufacturing hard, as happened in the late 1980s.

Other analysts favoured a cautious approach, saying the improving employment numbers and low inflation gave the bank breathing room.

The bank last cut its trend-setting overnight rate by a quarter point to 2.75 per cent at the beginning of September. That was the second cut in two months after the bank raised rates earlier in the year.

Economic growth has been sluggish this year with a jump in the loonie, SARS, the mad cow scare, the August blackout in Ontario and forest fires in British Columbia.

The jobless rate held steady at 8.0 per cent in September. Although the economy created jobs, that was offset by a jump in the number of people seeking work.

The strong dollar has put some pressure on the bank for a rate cut.

The Canada-U.S. interest rate spread － the difference between the Bank of Canada overnight rate and the U.S. Federal Reserve short-term rate － combined with weakness in the U.S. currency has boosted the Canadian dollar.

A higher dollar makes the country's exports more expensive, reducing sales. Some argued a rate cut would clip the loonie's wings.

Those favouring caution said the bank has time to wait out economic developments. If a cut were needed, it could come in December.