Bank of Canada holds key lending rate at 5% for sixth consecutive time
The Bank of Canada has opted to maintain its overnight rate at 5 percent, reflecting confidence in future economic growth despite concerns over
elevated inflation, particularly in housing costs. While there’s anticipation in financial markets for potential rate cuts starting in
June, supported by recent data showing rising unemployment and inflation below target levels, the Bank’s decision underscores a cautious
approach. Economists foresee the possibility of rate reductions later in the year, especially if inflation trends closer to the central bank’s
target of 2%. The next announcement is scheduled for June 5th, 2024.
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