Bank Rate Steady at 1.5%
CBJ — Despite hints that an increase was coming, the Bank of Canada has opted to leave its key interest rate unchanged at 1.5%. However, many economists are predicting this is just the precursor to a gradual path to higher rates over the coming months.
The Bank of Canada has been transparent in saying that additional rate hikes should be expected thanks to encouraging numbers for business investment, exports and evidence that households are adjusting to pricier borrowing costs.
Bank of Canada governor Stephen Poloz has raised the rate four times since mid-2017 and his most-recent quarter-point increase came in July.
The bank can raise its overnight rate as a way to keep inflation from running too hot. Its target range for inflation is between 1% and 3%.
The Bank of Canada’s next rate announcement is scheduled for October 24.