Canada's central bank has elected to maintain its benchmark interest rate at 0.25 per cent, while noting that the country's economic rebound from COVID-19 is progressing as expected.

While new infections and lockdown measures continue to delay a stronger economic bounce back, an increasing demand for energy has driven the price of oil. News of an impending vaccine rollout has helped also.

"News on the development of effective vaccines is providing reassurance that the pandemic will end and more normal activities will resume, although the pace and breadth of the global rollout of vaccinations remain uncertain," the bank explained.

The Bank of Canada convenes every six weeks to set its interest rate based on whether the economy requires a boost or to be slowed down while facing too aggressive of an inflation. The bank's rate then trickles down into the real economy by influencing consumers' rates on things such as variable rate mortgages and savings accounts.

During the bank's last meeting in October, it hinted that it would uphold the current rate level until at least 2023, predicting it will take that long to undergo a complete recovery.

"Canada's economic recovery will continue to require extraordinary monetary policy support," the bank said. "We remain committed to providing the monetary policy stimulus needed to support the recovery."