OTTAWA – The Bank of Canada is keeping its trendsetting overnight interest rate at one per cent, where it has been for more than three years during a weak economic recovery from the last recession.

The central bank said it sees some encouraging signs since its rate announcement in October, but adds the composition of unexpectedly strong growth in the third quarter still points to underlying fragility.

It said that the downside risks to inflation appear to have grown since its last policy announcement in October.

It also said exports and business investment have yet to show signs that give it confidence of a robust, self-sustaining recovery.

On housing, the bank said it considers recent revival in sales and prices as temporary and still expects a soft landing.

The bank’s next policy date is Jan. 22, when it will also release and updated report on the economy as a whole.

In its last monetary policy report in October, the bank had projected growth rates of 1.6 per cent this year and 2.3 per cent in 2014 for the Canadian economy.