- The Bank of Canada (BoC) concluded its latest policy meeting and has kept interest rates unchanged at current levels of 5 per cent
- In July, the BoC raised its trendsetting overnight key interest rate to 5 per cent, the highest since 2001
- The Bank has raised its overnight interest rate 10 times since March 2022 in an attempt to lower consumer prices, which peaked at just over 8 per cent
- Canada’s annual inflation rate fell to 3.8 per cent in September, down from 4.0 per cent in August
The Bank of Canada (BoC) concluded its latest policy meeting and has kept interest rates unchanged at current levels of 5 per cent.
On Wednesday, Canada’s central bank voted to pause its rate hikes as data shows an economic slowdown taking hold across the country, but suggested the door is open to future hikes.
In July, the BoC raised its trendsetting overnight key interest rate to 5 per cent, the highest it has been since 2001, and said that more rate hikes might be needed to lower inflation back down to its annualized target of 2 per cent.
The Bank of Canada’s aggressive rate hikes since March 2022 still weigh on consumers and businesses, as the economy shrank in Q2, and the labour market eased.
However, as price pressures weaken across the economy, Canada’s annual inflation rate fell to 3.8 per cent in September (down from 4.0 per cent in August), a time when the central bank held rates steady at its previous policy meeting.
The central bank has raised its overnight interest rate 10 times since March 2022 in an attempt to lower the inflation of consumer prices, which peaked at a little more than 8 per cent.
In July, the BoC stated that inflation would stay above its 2 per cent target until mid-2025 and growth would stall.
Earlier this month, bank Governor Tiff Macklem said the economy was not heading for a “serious recession.”
Join the discussion: Find out what everybody’s saying about public companies and hot topics about stocks at Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
