Economists widely expect the Bank of Canada to hold interest rates steady when the central bank announces it latest decision following a monetary policy meeting today (March 8).
At its last meeting on January 25, Canada’s central bank announced a quarter percentage point (25-basis point) rate increase, lifting its trendsetting overnight interest rate to 4.50%.
At that time, the Bank of Canada indicated that it plans to pause from further raising interest rates to assess the impact on the economy.
Recent economic data has shown that both the Canadian economy and inflation rate are slowing nationwide, though the labour market remains strong.
The Bank of Canada has warned that it is ready to take action and push interest rates higher should inflation remain above the central bank’s 2% annualized target for an extended period.
A recent poll by the Reuters News Agency found that most economists expect the Bank of Canada to hold its overnight interest rate at 4.50% for the remainder of this year.
