Bank of Canada maintains policy rate, continues quantitative tightening – Bank of Canada
The Bank of Canada key interest rate remains at 4.5%. The Bank continues to hold the rate and is expecting that inflation will continue to trend downward, however it “remains prepared to raise the policy rate further if needed to return inflation to the 2% target.” Their projection sees inflation decline sharply mid-2023, and then taper off more slowly toward 2% over 2024.
Policy interest rate – Bank of Canada
Policy interest rate adjustments from December 2021 to today (April 12, 2023). There have been 8 consecutive increases in an attempt to curb growing inflation. This marks the second announcement since January 25th that the rate did not increase.
While the Bank of Canada does not set your mortgage rates, its policies have an impact on them, as the other banks and lenders in Canada use the rates set in its policies in part to determine their own interest rates for your mortgage and other banking products.
“The next scheduled date for announcing the overnight rate target is June 7, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 12, 2023.”