Central Banks
Bank of Canada to Hold as It Debates When to Start Easing Rates
- Inflation is slowing but the economy is stronger than expected
- Macklem risks reigniting housing market with rate cuts
This article is for subscribers only.
The Bank of Canada is likely to leave interest rates unchanged and avoid signaling that cuts are imminent, as officials continue to assess the right moment to launch into easier monetary policy.
Markets and economists expect policymakers led by Governor Tiff Macklem to hold the benchmark overnight rate at 5% for a sixth straight meeting on Wednesday. Officials will probably keep their message neutral, while reiterating a cautious optimism that they should be able to start lowering borrowing costs sometime this year.