Canadian Rate Hike Off The Table In December

Posted on 12/06/2023

With inflation down to 3.1%, the Bank of Canada sees no need to hike rates for the remainder of the year. Rates will remain at 5%. However, similar to the U.S. Federal Reserve, the BOC says it is closely watching for signs of inflation. Current inflation is still above BOC’s target of 2%, but it has been trending down from over 8% a year prior.  “Monetary policy is moderating spending and relieving price pressures,” said the Governing Council. The 5% rates, while historically unremarkable, are, of course, considered high in today’s economy. The BOC says these rates are “clearly restraining spending.”

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