Bank of Canada holds key rate in 4th straight decision – National


The Bank of Canada held its benchmark interest rate steady at 5.0 per cent on Wednesday, keeping monetary policy tight as it seeks confirmation inflation will continue to slow.

The decision, which marks the fourth consecutive hold from the central bank, was widely expected by economists. The Bank of Canada has been raising the cost of borrowing since March 2022 in an effort to tamp down inflation, which has declined sharply from highs of 8.1 per cent.

The hold came despite an uptick in annual inflation to 3.4 per cent in December. But economists have pointed to slowing elsewhere in the economy as likely to tame price pressures.

The Bank of Canada has warned its benchmark interest rate might need to rise higher to bring inflation all the way back down to its two per cent target.

Story continues below advertisement

Even so, market watchers have started to forecast a timeline for rate cuts, with calls for easing to start between spring and summer of 2024.

More to come.


Click to play video: 'Canada’s higher interest rates hitting low-income households harder than wealthy: StatCan'


Canada’s higher interest rates hitting low-income households harder than wealthy: StatCan






Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top