Econimics Starting to think rate cuts will start happening in 2024.
Econimics Starting to think rate cuts will start happening in 2024.
The bank's rate influences the rate that Canadians get on things like variable-rate loans and some savings accounts.
The bank raised the rate to its current level in July, but has stood still ever since, as the Canadian economy shows signs of cooling.
"The slowdown in the economy is reducing inflationary pressures in a broadening range of goods and services prices," the bank said in announcing its decision.
Economists who monitor the central bank think it is indeed now done with hiking, and expectations are that the bank will in fact start to cut its rate some time in 2024.
"Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed," the bank, led by governor Tiff Macklem, said.
For economist Royce Mendes with Desjardins, however, that's mostly an empty threat aimed at making sure markets don't react too forcefully in assuming cuts are coming.
"Officials are probably just hesitant to prematurely declare victory in their battle with inflation," Mendes said.
Despite what the bank is saying every six weeks in their policy decisions, Mendes has detected a change in the messaging from bank officials in recent weeks.