The Bank of Canada is holding the line on interest rates. The rate set today is 5.0 per cent, the same as it has been.

While the hold on interest rates was widely expected, it is still the highest rate in decades.

The central bank embarked on a series of hikes over the past couple of years as a means of tackling inflation. It would like to see the pace of the increase in the cost of living down to two per cent year-over-year.

Bank of Canada Governor Tiff Macklem says a contraction in the economy can be directly attributed to the measures taken, but a cautious approach on interest rates will continue, meaning that rates may hold for the immediate future.

Whether the country is teetering on the brink of recession, some pundits are advising that households be prepared for a downturn.