The Bank of Canada is holding its key lending rate at 5 per cent.

The decision to hold the rate is based on a global economy that is slowing and expectations that economic growth will moderate further.

The Bank is projecting global GDP growth of 2.9 per cent this year, and dropping further to 2.3 per cent in 2024.

The Bank of Canada says the global growth outlook has not changed significantly from the summer, however, the drivers are shifting.

It says the US economy is proving stronger, while economic activity in China is weaker than expected.

In the meantime, the recent succession of interest rate increases is dampening economic activity and slowing inflation. Demand for housing, durable goods and many services is softening according to the Bank of Canada.