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Early signs point to cooling inflation, but will key interest rate change in Canada?

Early signs point to cooling inflation, but will key interest rate change in Canada?

CTV
Wednesday, March 6, 2024 1:36 PM GMT

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 expect the central bank to maintain its key interest rate at five per cent, despite signs inflation is cooling.

Canada's inflation rate dropped to 2.9 per cent in January as price pressures eased across the economy.

The Bank of Canada has signalled it wants to see sustained declines in inflation before pivoting to rate cuts.

Forecasters expect the central bank to begin lowering interest rates around the middle of the year.

The slowdown in the Canadian economy is expected to pave the way to lower interest rates by putting downward pressure on price growth.

This is a developing news story. Check back for more information.

Read full story on CTV
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