As expected the Bank of Canada held interest rates at 0.75 per cent Wednesday and believes that the economy will improve in the second quarter with non-energy exports growing as the US economy continues to pick up. However many private sector economists are less optimistic including mortgage lender Dominion which points to a decline in business investment as a result of the weak oil sector and the likelihood that the loonie will weaken. It also says that rates for 5-year government bonds, which affect mortgage rates, are driven by global conditions and are largely outside of the control of the BoC, and that those rates have been rising in recent months. 

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