Sun. Mar 3rd, 2024

Another hike in interest rates rêt is unlikely

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The Bank of Canada building, in Ottawa (Archive photo)

The Canadian Press

The likelihood of another interest rate hike has diminished, according to deliberations of the board of directors of the Bank of Canada.

The Bank of Canada released a summary of its December 6 interest rate decision on Wednesday. The summary reveals that the governing council felt more optimistic about the outlook for inflation.

Recent data has demonstrated that the economic slowdown is attributable to a reduction in spending, an element on which the central bank counts to moderate inflation.

The central bank kept its key rate stable at the start of the month for the third time in a row. Forecasters widely expect the next move to be to cut interest rates over the next year.

However, the Bank of Canada has not yet ruled out the possibility of another rate hike. In the summary, she notes that it may be necessary to raise rates again in order to further curb inflation.

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Statistics Canada released its Consumer Price Index (CPI) report for November on Tuesday, which showed that inflation did not slow down last month and increased maintained at 3.1%.

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