Bank Of Canada Leaves Rates Unchanged Amid Ongoing Inflation Concerns

In a widely expected move, the Bank of Canada on Wednesday announced that it has once again decided to leave interest rates unchanged.

The Bank of Canada held its target for the overnight rate at 5.0 percent, with the bank rate at 5.25 percent and the deposit rate at 5.0 percent.

The decision to leave rates unchanged came as the Bank of Canada said its Governing Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation.

“Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behavior,” the Bank of Canada said.

With inflation expected to remain close to 3 percent during the first half of this year before gradually easing, the Bank of Canada said it remains resolute in its commitment to restoring price stability for Canadians.

The Bank of Canada’s next monetary policy decision is scheduled for April 10, 2024, when the bank will also publish its next full outlook for the economy and inflation, including risks to the projection.