Central Banks
Bank of Canada Holds Again and Pushes Back Against Rate-Cut Bets
- Loonie rallies, bonds slump with sturdier growth now forecast
- Officials still willing to hike if needed to curb inflation
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The Bank of Canada left interest rates unchanged for a second straight meeting and pushed back against market expectations for a cut later this year.
Policymakers led by Governor Tiff Macklem held the overnight lending rate at 4.5% on Wednesday, in line with the expectations in a Bloomberg survey of economists. Central bankers upgraded their outlook and said recent data are “reinforcing” their confidence that inflation pressures will abate, while keeping the door open to additional hikes should the economy surprise to the upside.