Bank of Canada Governor Tiff Macklem holds a press conference at the Bank of Canada in Ottawa on Wednesday, March 6, 2024. THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA – The Bank of Canada is set to announce its interest rate decision this morning.
It’s widely expected to maintain its key interest rate at five per cent, but economists will be watching for any hints about the timing of upcoming rate cuts.
Forecasters expect the central bank to begin lowering its key rate in June as the economy continues to slow and inflation trends lower.
High interest rates have slowed demand in the economy as consumers pull back on spending and businesses hold off on investment plans, helping lower inflation.
Canada’s inflation rate was 2.8 per cent in February.
The Bank of Canada will also release its monetary policy report, which will offer its latest projections for inflation and economic growth.
This report by The Canadian Press was first published April 10, 2024.
