Bank of Canada to hold rates steady as inflation eases and economy skirts recession
January's inflation numbers dipped to 2.9 per cent, falling into the 1 per cent-3 per cent range targeted by the BoC, but Antunes said that was not enough to convince it to cut now.
Bank of Canada to hold rates steady as inflation eases and economy skirts recession
Ottawa: The Bank of Canada (BoC) is expected to hold its key overnight rate steady at 5 per cent on Wednesday, economists said, even though data have shown inflation easing and economic growth sputtering. Inflation has stayed stubbornly above the BoC’s target of 2 per cent for three years, and despite rates being at a 22-year high, Canada’s economy has so far avoided recession and may be picking up steam. “The bank (BoC) has been quite prudent and our sense is that we won’t see a rate reduction until mid-year, until about June or July,” said Pedro Antunes, chief economist at Conference Board of Canada, an independent think tank.
January’s inflation numbers dipped to 2.9 per cent, falling into the 1 per cent-3 per cent range targeted by the BoC, but Antunes said that was not enough to convince it to cut now. Core price measures, which are closely watched by the central bank, also eased in January. The central bank’s governing council will announce its decision on the target for the overnight rate at 1445 GMT (0945 local time). The BoC has left rates on hold at its four previous meetings.
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