Bank of Canada expected to hold interest rates next week
The Bank of Canada has made eight consecutive policy rate increases since 2022.
As higher interest rates start paying off for the Bank of Canada , economists generally expect the central bank to keep its key interest rate unchanged in next week's rate decision.
For the first time since last March, the Bank of Canada is expected to announce on Wednesday that it will maintain its key rate, which currently stands at 4.5%.
In January, the Bank of Canada made its eighth straight rate hike and said it would pause to give the economy time to react to rising borrowing costs.
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|
Date |
Key rate |
Rise |
|---|---|---|
|
January 25, 2023 |
4.50% |
0.25% |
|
December 7, 2022 |
4.25% |
0.50% |
|
October 26, 2022 |
3.75% |
0.50% |
|
September 7, 2022 |
3.25% |
0.75% |
|
July 13, 2022 |
2.50% |
1.00% |
|
June 1, 2022 |
1.50% |
0.50% |
|
April 13, 2022 |
1.00% |
0.50% |
|
March 2, 2022 |
0.50% |
0.25% |
Source: Bank of Canada
The central bank stressed that the pause was conditional , leaving the door open for further rate hikes if needed.
CIBC's Chief Economics Officer Karyne Charbonneau says the Bank of Canada is likely pleased with recent economic data, which shows a slowing economy and falling inflation.
The Bank of Canada would likely sit on the sidelines for a for some time unless inflation turns out to be more rigid than expected, says Charbonn water.
