Help us by filling out this quick price survey

Take Survey
Bank of Canada to hold key rates steady amid recession concerns

Bank of Canada to hold key rates steady amid recession concerns

Posted on March 8, 2024   |  

The Bank of Canada (BoC) is expected to keep its key overnight rate steady at 5%, despite signs of easing inflation and slow economic growth.

Inflation has consistently remained above the BoC's 2% target for three years, despite high rates. However, Canada's economy has managed to avoid recession and may be gaining strength.

January's inflation rate dropped to 2.9%, falling within the BoC's target range of 1%-3%. Core price measures also showed a decrease.

The BoC's governing council will announce its decision on the overnight rate later today, having kept rates unchanged in the past four meetings.

There is a 44% chance of a rate cut as early as April, according to money markets, with full pricing for a rate cut in June.