The bank maintained the overnight rate at 1/4 percent - the lowest in Canadian history.

According to the bank's projection, the Canadian economy will contract by 2.3 percent in 2009 and then grow by 3.0 percent in 2010 and 3.5 percent in 2011.

Apart from cutting the overnight rate to the lowest point in Canadian history last year, the central bank had also pumped billions into the system to ease the credit crunch since the economic crisis began last year.

Canada has been hit the hardest by the US meltdown as its big neighbour down south accounts for more than 85 percent of its trade.

Canada's auto, manufacturing, oil and gas and lumber industries which are deeply linked to the US, have been the worst hit by the economic crisis.

The nation's unemployment rate has jumped to 8.6 percent.

According to Statistics Canada, nearly 1.6 million Canadians in a total population of about 33 million are now out of jobs.