The Bank of Canada opted to hold its benchmark interest rate steady at five per cent as the economy is showing more and more signs of cooling. The move was widely expected by economists and other financial observers, as the central bank's unprecedentedly swift campaign of rate hikes since early 2022 have made major headway on bringing down runaway inflation. Canada's key interest rate remains at 5% Photo: Wowa, Bank of Canada (CBC)A slew of financial indicators in recent weeks suggest that may be on the table. In a statement accompanying its decision, it said it remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed. The recent string of weak data reinforces our call that the Bank of Canada will not be raising rates any further this cycle, Mendes said.

Source: CBC News September 06, 2023 15:41 UTC