What economists expect from the next Bank of Canada rate decision
BNN Bloomberg
Economists expect the Bank of Canada’s trend-setting interest rate will remain unchanged next week, but the central bank’s sentiment will be watched closely for signs of its next moves.
The Bank of Canada will announce its next rate decision on Jan. 24. Economists tracked by Bloomberg expect the central bank will keep its policy rate at five per cent, even after an unexpected increase in December inflation.
A continued rate pause would mark the fourth consecutive hold from the central bank since bringing the policy rate to five per cent in July 2023.
But even with rates expected to remain steady, Benjamin Tal, deputy chief economist at CIBC Capital Markets, told BNN Bloomberg that the “sentiment of the Bank of Canada” will be key, and markets will be hanging on its every word.
