It’s a hold the line approach as the Bank of Canada will keep interest rates at five per cent heading into the new year.

The central bank has maintained its approach over the past few months as the economy has slowed and the cost of living inches down.

The decision takes some pressure off your finances especially if you have any short term loans.

The bank sets its cost of borrowing rate eight times a year and this marks the third consecutive time it was held at five per cent.

The inflation rate has dropped from 8.1 per cent to 3.8 since last year.