Bank of Canada to announce interest rate decision this morning

OTTAWA –

The Bank of Canada is ready to announce its rate of interest determination this morning as hypothesis about one other price hike heats up.

Recent financial knowledge suggests the Canadian economic system is operating hotter than forecasters had anticipated, elevating considerations concerning the inflation outlook.

Last week, Statistics Canada reported actual gross home product grew at an annualized price of three.1 per cent within the first quarter, whereas a preliminary estimate suggests it expanded once more in April.

Economists — a lot of whom anticipated excessive rates of interest to ship the economic system right into a recession by now — say the latest knowledge suggests the central financial institution might must hike rates of interest once more to get inflation again to the 2 per cent goal.

The Bank of Canada, which paused its rate-hiking cycle earlier this yr after elevating its key rate of interest to 4.5 per cent, has signalled it will hike charges once more if the economic system continued to run too scorching or inflation proved to be sticky.

Canada’s annual inflation price has steadily declined since final summer time however ticked up barely to 4.4 per cent in April.

This report by The Canadian Press was first revealed June 7, 2023