As anticipated, the Bank of Canada announced this Wednesday that interest rates will remain without any changes.
The Bank has held the position for its overnight rate at 5.0 percent, placing the bank rate at 5.25 percent and the deposit rate at 5.0 percent.
This decision stemmed from the concerns of the Bank of Canada's Governing Council about potential risks to the inflation outlook, notably the perseverance of underlying inflation.
The Council expressed a desire for further and consistent reduction in core inflation and continues to prioritize balancing supply and demand within the economy. They are also focusing on inflation expectations, wage growth, and the pricing behavior of corporations, as indicated by the Bank of Canada.
The Bank anticipates that inflation will hover close to 3 percent for the first half of this year before it begins to gradually decrease. However, the Bank of Canada reaffirms its determined pledge to re-establish price stability for all Canadians.
The Bank of Canada has its next monetary policy decision scheduled for April 10, 2024, at which point it will also release its all-encompassing economic and inflation outlook, inclusive of any potential risks to their projection.
