The Bank of Canada held its benchmark interest rate steady at 3% on Wednesday, noting that dropping commodity prices should serve to dampen inflation, and overall financial conditions in Canada that are "significantly better" than those in most major economies.

Falling commodities prices has eased inflationary concerns, the BoC said, while, "overall, the level of economic activity is slightly lower than expected in July but still close to the economy's production capacity."

Commodity prices in general have fallen 16% since the beginning of July.

"Given these developments, the Bank judges that the current level of the target for the overnight rate remains appropriately accommodative."

Continued at Financial Post