The Bank of Canada has decided to maintain the key interest rate at 5%, unchanged from the previous announcement.

The Bank of Canada decided to maintain its key overnight lending rate at five per cent, which was widely anticipated. Governor Tiff Macklem emphasized that while inflation is expected to remain around 3 per cent until mid-year before easing, it is still too early to consider reducing the restrictive monetary policy that has helped lower inflation. This marks the fifth consecutive announcement where the Bank has kept the rate unchanged. The Bank has raised interest rates 10 times since March 2022 to curb inflation, aiming to bring it down to its 2 per cent target. Despite some recent economic growth, concerns persist about underlying weaknesses, including declining real consumer spending per capita.