(OTTAWA) As higher interest rates begin to bear fruit for the Bank of Canada, economists generally expect the central bank to hold its key interest rate on hold in the rate decision. next week.
For the first time since last March, the Bank of Canada should announce on Wednesday that it will maintain its key rate, which is currently at 4.5%.
In January, the Bank of Canada made its eighth straight rate hike and said it would pause to give the economy time to react to rising borrowing costs.
The central bank stressed that the pause was conditional, leaving the door open for further rate hikes if needed.
CIBC’s chief economics officer, Karyne Charbonneau, says the Bank of Canada is likely pleased with recent economic data, which shows a slowing economy and falling inflation.
The Bank of Canada would likely sit on the sidelines for some time unless inflation turns out to be more sticky than expected, Ms.me Charbonneau.