Bank of Canada Update: No change to the policy interest rate

As expected the Bank of Canada held its key overnight interest rate at 5%. This is the sixth consecutive hold since July 2023 following a decrease to core inflationary numbers and a jump in unemployment. With the housing market continuing to heat up, the Bank of Canada is vague to signal when rate cuts will begin. However, assuming we maintain downward momentum to inflation, most economists are predicting that we may see a 0.25 bp decrease as early as June, bringing the rate back down to 4.75% with continuing rate decreases throughout 2024 and 2025.

The next Bank of Canada rate announcement is scheduled for June 5th, 2024.