Bank of Canada to announce interest rate decision today, expected to hold key rate

OTTAWA –

The Bank of Canada is set to announce its interest rate decision this morning, with economists widely expecting the central bank to keep its key rate on hold.

In its latest announcement on January 25, the Bank of Canada announced a quarter-point interest rate hike to 4.5 percent.

At the time, the central bank said it planned to take a break from raising interest rates to assess the impact of previous hikes on the economy.

High borrowing costs are expected to slow the economy this year as people and businesses hold back on spending.

The latest economic data shows that both the economy and inflation are slowing, although the labor market was still hot in January.

However, if inflation turns out to be stickier than expected, the Bank of Canada has said it is ready to jump back in and raise interest rates further.

This report by The Canadian Press was first published on March 8, 2023