The Bank of Canada remains on guard and maintains its key rate at 5%, even though inflation is showing signs of easing and the economy is weakening.
The tone of the central bank’s message was more expected than the decision on the rate, which had been widely anticipated by economists. And this tone is still one of caution.
“Today’s decision was taken because the Council believes that a policy rate of 5% remains appropriate. It is still too early to think about lowering it,” explained Governor Tiff Mackelm at a press conference. The Bank of Canada wants to see inflation decline sustainably before changing course. Its next rate decision is April 10.
The Bank of Canada’s key rate has been at 5% since July and has just been maintained at this level for the fifth time.
More details to come