News

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%.

Interest rates are working to moderate spending and inflation is easing gradually, though underlying pressures are proving persistent. The Bank projects that inflation will stay around 3% through the first half of 2024, returning to target in 2025.

Governor Tiff Macklem discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

Results from the Business Outlook Survey and the Business Leaders’ Pulse show that with high interest rates and soft demand, firms’ sales growth has slowed over the past 12 months. Firms are less optimistic about current business conditions than they were last quarter, but they expect their sales growth to stabilize in the coming year. With competition returning and demand remaining soft, businesses’ pricing behaviour is slowly returning to normal.