Bank of Canada expected to hold key interest rate steady

The Bank of Canada is set to announce its interest rate decision this morning.

The Bank of Canada is set to announce its interest rate decision this morning.

Economists widely anticipate the central bank will continue to hold its key interest rate steady at 4.5 per cent, even as the economy is running hotter than expected.

Despite elevated interest rates, the economy continued to grow at the start of the year, while unemployment hovers near record lows.

The Bank of Canada has said it is hoping to see the economy slow further, while working to get the country's annual inflation rate back to its two per cent target.

In February, inflation fell to 5.2 per cent, marking the second month in a row inflation came in lower than forecast.

The central bank will also release its updated economic projections for growth and inflation in its monetary policy report today.

This report by The Canadian Press was first published April 12, 2023