The Bank of Canada holds the policy rate at 5% in its first decision of 2024. In a scheduled announcement on January 24, 2024, the Bank of Canada decided to maintain its target for the overnight lending rate at 5%. This was its fourth consecutive hold after two interest rate hikes last summer. The Bank noted that Canada’s economy had performed sluggishly over the second half of 2023 and anticipated no growth over the first quarter of 2024 before picking up in the second half of this... [read more]

The Bank of Canada increases interest rates and continues quantitative tightening. The Bank of Canada started its 2023 schedule of rate announcements by increasing its target for the overnight lending rate by 25 basis points to 4.5%, while at the same time continuing its policy of quantitative tightening. The Bank indicated that global inflation remains high and broad-based but is beginning to retreat in many countries driven mainly by lower energy prices and supply chain... [read more]

Bank of Canada decides to hold policy rate at 5% in October. In a scheduled announcement on October 25, 2023, the Bank of Canada decided to maintain its target for the overnight lending rate at 5%. The Bank cited growing evidence of a slowdown in economic activity due to past interest rate increases, which were also helping to relieve inflation. The Bank noted reduced consumption and resale housing activity as contributing factors to weaker economic activity, but that labour market... [read more]