Published on 03/03/2023 at 17:35
In January, the Bank of Canada made its eighth consecutive interest rate hike. (Photo: The Canadian Press)
OTTAWA — As higher interest rates begin to bear fruit for the Bank of Canada, economists generally expect the central bank to keep interest rates on hold in next week’s bank interest rate decision.
For the first time since last March, the Bank of Canada was expected to announce on Wednesday that it would keep interest rates unchanged at 4.5%.
In January, the Bank of Canada made its eighth straight rate hike and said it would pause to give the economy time to respond to rising borrowing costs.
The central bank stressed that the pause was conditional and left the door open for further rate hikes if needed.
Karyne Charbonneau, CIBC’s chief economics officer, says the Bank of Canada is likely pleased with recent economic data showing a slowdown in the economy and falling inflation.
The Bank of Canada would likely sit on the sidelines for some time unless inflation proves tougher than expected, Charbonneau said.
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