The Bank of Canada has once again left its overnight target rate unchanged at 4.50%. This is the Bank’s second rate hold this year and was fully expected by markets. In its statement, the Bank said it “continues to assess whether monetary policy is sufficiently restrictive to relieve price pressures and remains prepared to raise the policy rate further if needed to return inflation to the 2% target.”
In its latest Monetary Policy Report, the Bank said it expects CPI inflation to fall from its current level of 5.2% to around 3% by mid-2023 and to the Bank’s 2% target by the end of 2024. GDP growth is expected to be just 1.4% this year and 1.3% in 2024. The next announcement will take place June 7.
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