Bank of Canada interest rate

Bank of Canada Holds Interest Rate at 5%: What's Next?

Find out why the Bank of Canada's decision to maintain the interest rate at five per cent is making waves and what to expect next!

The Bank of Canada has made a significant announcement by deciding to keep its trendsetting interest rate steady at five per cent. This decision, expected by many economists, signals a potential shift towards cutting interest rates in the near future. Governor Tiff Macklem highlighted the central bank's focus on assessing when it may begin reducing interest rates. Despite mixed economic signals clouding the future, the Bank of Canada's stance on maintaining the policy rate at 5% is clear, paving the way for potential rate cuts.

Experts suggest that the Bank of Canada may have reached the peak of its tightening cycle, hinting at a possible downward trend in interest rates. The economy's slowed growth this year has influenced the central bank's outlook, with projections for global GDP growth adjusted for 2024 and 2025. As the Bank of Canada navigates through uncertain economic conditions, households eagerly anticipate news on a potential decrease in interest rates, seeking relief from the impact of rising rates.

In 2024, the Bank of Canada's key interest rate remains at five per cent, maintaining a stance of caution amid concerns about inflation risks. The central bank's indication of possible rate cuts in the future contrasts with previous expectations of a continued tightening cycle. With economic growth showing signs of stalling, the Bank of Canada's decision to hold the interest rate at 5% reflects a strategic approach towards managing inflation and fostering economic stability.