Bank of Canada Rate Announcement - April 12, 2023
April 12, 2023 | Posted by: Ken Fadel
The BoC announced no change to its benchmark interest rate today, leaving its key rate untouched at 4.50% for a second consecutive month as it continues a careful pivot away from its rate-hiking trajectory of the past year.
This decision was fully expected by markets as most polled economists believe the BoC will leave it unchanged for the remainder of the year, while some still suggest that a rate cut is a possibility by the end of 2023. In its statement, the Bank said it “continues to assess whether monetary policy is sufficiently restrictive to relieve price pressures and remains prepared to raise the policy rate further if needed to return inflation to the 2% target.”
While strong signals from the labour market suggest the economy is operating at a faster pace then expected, inflation continues its steady descent since hitting a 39 year high last June. CPI was measured at 5.2% in March, well below the 8.1% it hit last summer but still well above target. The Bank expects CPI inflation to fall from its current level to around 3% by mid-2023 and to the Bank’s 2% target by the end of 2024.
The next BoC rate announcement is scheduled for June 7th.