Bank of Canada maintains rates flat

Bank of Canada announced no change to interest rates at 5% as expected, pointing to recent data which showed that successive rate hikes reduced the pressures of prices and slowed down activities. 

However, BoC expressed concerns of its members that prices are still slow to stabilize and inflationary risks continue to mount, potentially hinting at another upcoming interest rate hike. 

The central bank expects inflation to remains high until mid-2024 as energy and housing prices continue to increase, expecting inflation to only reach the coveted 2% target at late 2025. 

BoC also expects third-quarter GDP to clock in at 0.8%, and similarly at 0.8% in the fourth quarter. 

The bank raised interest rates 10 times between March 2022 and last July,. with inflation ascending a peak of 8% last year, while inflation fell to 3.8% in September from 4% in August.