Bank of Canada holds key interest rate at 5%, says things moving in right direction.
.png)
The Bank of Canada maintained its key overnight lending rate at five percent, yet hinted at potential cuts in June, citing expectations of continued inflation deceleration.
Despite inflation easing to 2.8 percent in February, with slowdowns observed across various sectors like goods, food, clothing, and services, persistently high rent and mortgage interest costs have sustained overall inflation rates.
With prolonged maintenance of interest rates at five percent, there's an increasing risk of inadvertently pushing the economy into recession.
Economists anticipate a 25-basis-point reduction in June's rate announcement, potentially lowering the policy rate to 4.75 percent - aligning with levels seen in June 2023. Moreover, they forecast further incremental cuts in subsequent meetings thereafter.
https://www.cbc.ca/news/business/bank-of-canada-interest-april-10-interest-rates-1.7169183