Tiff Macklem, governor of the Bank of Canada, has decided to keep the central bank’s rate steady at 4.5 per cent. It’s the first time in more than a year that the bank has not hiked its rate. (Renaud Philippe/Bloomberg)
The Bank of Canada decided Wednesday to keep its trend-setting interest rate right where it is, at 4.5 per cent.
It’s the first time in more than a year that the central bank has decided not to raise its interest rate.
Although it will come as encouraging news to borrowers, the move was widely expected, as the bank signalled at its previous policy meeting and in statements since then that it was leaning toward keeping its rate steady.
The bank feels confident in standing pat because there is growing evidence that sky-high inflation is starting to ease.
More to come.
ABOUT THE AUTHOR
Pete Evans is the senior business writer for CBCNews.ca. Prior to coming to the CBC, his work has appeared in the Globe & Mail, the Financial Post, the Toronto Star, and Canadian Business Magazine. Twitter: @p_evans Email: [email protected]
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