By The Canadian Press on December 20, 2023.
OTTAWA – The Bank of Canada’s governing council agreed the odds of another rate hike have decreased during its discussions ahead of the interest rate decision earlier this month.
The Bank of Canada released its summary of deliberations for its Dec. 6 interest rate decision today, revealing the governing council felt more optimistic about the country’s inflation outlook.
Recent data showed the economic slowdown is being driven by a pullback in spending, which the central bank is relying on to bring inflation down.
The central bank opted to hold its key interest rate steady earlier this month for a third time in a row, as forecasters widely expect its next move will be to cut interest rates sometime next year.
But the Bank of Canada hasn’t ruled out the possibility of another rate increase yet, noting in the summary that it may be necessary to raise rates again to further quash inflation.
Statistics Canada released its November consumer price index report on Tuesday, which showed inflation did not slow down last month, holding steady at 3.1 per cent.
This report by The Canadian Press was first published Dec. 20, 2023.