February 26th, 2024

Bank of Canada to announce interest rate decision today, expected to continue hold

By The Canadian Press on January 24, 2024.

The Bank of Canada is set to make its first interest rate announcement of the year this morning. Bank of Canada Governor Tiff Macklem arrives for the annual meeting of federal, provincial, and territorial finance ministers in Toronto, Friday, Dec. 15, 2023. THE CANADIAN PRESS/Nathan Denette

OTTAWA – The Bank of Canada is set to make its first interest rate announcement of the year this morning.

Economists widely expect the central bank will continue holding its key interest rate steady at five per cent.

But all eyes will be on governor Tiff Macklem for any hints on when the central bank plans to pivot to rate cuts.

The Bank of Canada has held its key interest rate steady at its last three announcements as economic data suggests monetary policy is slowing inflation.

However, Canada’s annual inflation rate ticked back up in December to 3.4 per cent, complicating the central bank’s path.

Forecasters still expect economic weakness will allow the Bank of Canada to begin cutting interest rates as early as this spring.

This report by The Canadian Press was first published Jan. 24, 2024.

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