No Change to Bank of Canada Rate
As was widely expected, the Bank of Canada held the overnight at 5%. The prime rate will remain at 7.2% as a result.
The Bank noted the global economy is slowing and is expected to continue to di so in 2024 and 2025.
In Canada, the previous rate increases are having the desired effect in dampening economic activity. Labour market pressures are also easing due to the strong surge in Canada’s population.
Economic growth is expected to remain weak until late 2024 but then is expected to increase through 2025.
Inflation, while somewhat volatile in recent months, it is showing signs of moderating. CPI inflation is expected to average 3.5% through mid 2024 before lowering to 2% in 2025.
Read the full press release here: Bank of Canada maintains policy rate, continues quantitative tightening – Bank of Canada
The next meeting is scheduled for Dec 6,0223