Canada holds rates, warns on inflation

The Bank of Canada on Tuesday opted to keep rates at 3% but warned inflation was set to soar above 4%, double the institution's target.

The central bank said that commodity prices were continuing to outstrip earlier expectations. This has led to further increases in Canada's terms of trade and real national income, and has altered the outlook for global and domestic inflation.

Total CPI inflation over the next year was now expected to be much higher than projected at the time of the April Mone