The Bank of Canada has announced no change to its benchmark interest rate in today’s announcement for a second consecutive month as it continues a careful pivot away from its rate-hiking trajectory of the past year. A further sign that it believes the heavy lifting has been done in efforts to cool the economy and battle inflation.
That decision had been widely expected by leading Canadian economists based on a poll by Reuters last week indicating that a majority anticipated the Bank would hold its policy rate steady in this announcement – and leave it unchanged for the remainder of the year – with a small minority even suggesting that a rate cut could be in the cards by the end of 2023.
The Bank opted to stay the course on interest rates despite some indications that the Canadian economy continues to operate at a faster clip than expected.
The Bank of Canada is scheduled to make its next decision on interest rates on June 12.
