2023-09-06 10:30:49
Canada’s inflation rate was 3.3% in July compared to the same period last year, still above the 2% target. However, economists believe that difficulties that have started to appear in the economy will probably cause the central bank to oppose further rate hikes.
Indeed, Statistics Canada reported last week that the country’s real gross domestic product contracted in the second quarter. Meanwhile, the jobless rate has been on the rise for three straight months, hitting 5.5% nationwide.
The Bank of Canada’s key interest rate is currently at 5.0%, its highest level since 2001.
Wednesday’s announcement will be made by press release and will be followed Thursday by a press conference by bank governor Tiff Macklem.
See also: Inflation and policy rate: what to expect from the Bank of Canada by 2024?
Voices are raised once morest the rise
On Tuesday, Parti Québécois leader Paul St-Pierre Plamondon called on the Bank of Canada to stop the “brutal” increase in interest rates and asked François Legault to formally intervene on behalf of the government. of Quebec in order to oppose a new increase.
The Liberal Party of Quebec has made a similar request.
In response, the head of the government of Quebec preferred to defend the independence of the Bank of Canada and therefore refused to try to influence its decisions.
The Premiers of British Columbia and Ontario have spoken recently to demand that the Bank of Canada put a stop to interest rate hikes.
See also: Inflation: “cracks” appear in the economy
With information from The Canadian Press.
1694003554
#Bank #Canada #provide #update #key #rate
