Bank of Canada to hold rates on Wednesday, but economists differ on whether cuts or hikes loom
The Bank of Canada is expected to hold its key overnight interest rate at 2.25% on Wednesday, but economists are divided on whether the next move will be a cut or a hike. Economists cite factors such as inflation, oil prices, and economic growth as influencing the bank's decision.
The Bank of Canada is likely to keep its key overnight interest rate unchanged at 2.25% on Wednesday, marking the fourth consecutive hold. Economists are divided on the bank's next move, with some predicting a rate hike and others a cut. The bank is balancing inflation expectations, driven by skyrocketing oil prices, with ensuring the economy doesn't slow down too much. Recent data points, including stagnating job growth and subdued business investment, are in line with the Bank of Canada's March assessment that risks to the economic outlook were 'tilted to the downside.' The bank is expected to stress its willingness to act as needed to keep inflation expectations anchored. Economists at Bank of Montreal and Toronto-Dominion Bank expect the bank to maintain its rate on Wednesday, while Derek Holt of Bank of Nova Scotia predicts hikes in the second half of 2026.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.